Request for Public Comments on Bilateral Textile Consultations with the Government of Kenya on Certain Cotton and Man-Made Fiber Textile Products

DEPARTMENT OF COMMERCE

Request for Public Comments on Bilateral Textile Consultations

with the Government of Kenya on Certain Cotton and Man-Made Fiber

Textile Products

May 12, 1994.

AGENCY: Committee for the Implementation of Textile Agreements (CITA).

ACTION: Notice.

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FOR FURTHER INFORMATION CONTACT: Helen L. LeGrande, International Trade

Specialist, Office of Textiles and Apparel, U.S. Department of

Commerce, (202) 482-4212. For information on categories for which

consultations have been requested, call (202) 482-3740.

SUPPLEMENTARY INFORMATION:

Authority: Executive Order 11651 of March 3, 1972, as amended;

section 204 of the Agricultural Act of 1956, as amended (7 U.S.C.

1854).

On April 29, 1994, under the terms of Section 204 of the

Agricultural Act of 1956, as amended, the Government of the United

States requested consultations with the Government of Kenya with

respect to textile products in Categories 340/640 (man-made fiber woven

shirts) and 360 (cotton sheets), produced or manufactured in Kenya.

The purpose of this notice is to advise the public that, if no

solution is agreed upon in consultations with the Government of Kenya,

the Committee for the Implementation of Textile Agreements may later

establish limits for the entry and withdrawal from warehouse for

consumption of cotton and man-made fiber textile products in Categories

340/640 and 360, produced or manufactured in Kenya and exported during

the twelve-month period which began on April 29, 1994 and extends

through April 28, 1994, at levels of not less than 205,623 dozen

(Categories 340/640) and 1,565,616 numbers (Category 360).

Summary market statements concerning Categories 340/640 and 360

follow this notice.

Anyone wishing to comment or provide data or information regarding

the treatment of Categories 340/640 and 360, or to comment on domestic

production or availability of products included in Categories 340/640

and 360, is invited to submit 10 copies of such comments or information

to Rita D. Hayes, Chairman, Committee for the Implementation of Textile

Agreements, U.S. Department of Commerce, Washington, DC 20230; ATTN:

Helen L. LeGrande. The comments received will be considered in the

context of the consultations with the Government of Kenya.

Because the exact timing of the consultations is not yet certain,

comments should be submitted promptly. Comments or information

submitted in response to this notice will be available for public

inspection in the Office of Textiles and Apparel, room H3100, U.S.

Department of Commerce, 14th and Constitution Avenue, NW., Washington,

DC.

Further comments may be invited regarding particular comments or

information received from the public which the Committee for the

Implementation of Textile Agreements considers appropriate for further

consideration.

The solicitation of comments regarding any aspect of the

implementation of an agreement is not a waiver in any respect of the

exemption contained in 5 U.S.C. 553(a)(1) relating to matters which

constitute ``a foreign affairs function of the United States.''

The United States remains committed to finding a solution

concerning Categories 340/640 and 360. Should such a solution be

reached in consultations with the Government of Kenya, further notice

will be published in the Federal Register.

A description of the textile and apparel categories in terms of HTS

numbers is available in the CORRELATION: Textile and Apparel Categories

with the Harmonized Tariff Schedule of the United States (see Federal

Register notice 58 FR 62645, published on November 29, 1993).

Rita D. Hayes,

Chairman, Committee for the Implementation of Textile Agreements.

Market Statement--Kenya

Category 340/640--Men's and Boys' Cotton and Manmade Fiber Woven Shirts

April 1994

Import Situation and Conclusion

U.S. imports of men's and boys' cotton and manmade fiber woven

shirts, Category 340/640, from Kenya reached 227,337 dozen during the

year ending February 1994, more than seven times the 31,872 dozen

imported a year earlier. Imports from Kenya were 22,516 dozen in 1992.

The sharp and substantial increase in Category 340/640 imports from

Kenya is disrupting the U.S. market for men's and boys' cotton and

manmade fiber woven shirts.

U.S. Production, Import Penetration, and Market Share

U.S. production and imports of men's and boys' cotton and manmade

fiber woven shirts, Category 340/640, declined during the recession

years 1990 and 1991. Production recovered slightly in 1992, while

imports surged. In 1993, U.S. production fell 2 percent below the 1992

levels and was 26 percent below the pre-recession 1989 level. In

contrast, 1993 imports increased by five percent over the 1992 level,

and were 19 percent above the 1989 pre-recession level.

The ratio of imports to domestic production increased from 157

percent in 1989 to 253 percent in 1993. The U.S. producer's share of

the domestic market fell from 39 percent in 1989 to 28 percent in 1993,

a decline of 11 percentage points.

Duty-Paid Value and U.S. Producers' Price

Approximately 72 percent of Category 340/640 imports from Kenya

during the year ending February 1994 entered under HTSUSA numbers

6205.20.2050--men's woven cotton shirts, other than dress and corduroy,

with two or more colors in the warp and/or the filling, not napped; and

6202.20.2065--men's woven cotton shirts, other than dress and corduroy,

with one color in the warp and/or the filling. These shirts entered the

U.S. at landed duty-paid values below U.S. producers' prices for

comparable shirts.

Market Statement--Kenya

Category 360--Cotton Pillowcases

April 1994

Import Situation and Conclusion

U.S. imports of cotton pillowcases, Category 360, from Kenya began

in August 1993, and during the seven month period August 1993 through

February 1994 reached 1,721,928 numbers (143,494 dozen). In just seven

months, Kenya became the fifth largest supplier of cotton pillowcases

to the U.S. market, accounting for 8 percent of total Category 360

imports.

The sharp and substantial increase in Category 360 imports from

Kenya is disrupting the U.S. market for cotton pillowcases.

U.S. Production, Import Penetration, and Market Share

U.S. production of cotton pillowcases, Category 360, declined from

3,384,000 dozen in 1992 to 2,855,000 dozen in 1993, a decline of 16

percent. By contrast, U.S. imports of cotton pillowcases, Category 360,

increased from 1,499,000 dozen in 1992 to 1,706,000 dozen in 1993, an

increase of 14 percent.

The ratio of imports to domestic production increased from 44

percent in 1992 to 60 percent in 1993. The share of this market held by

domestic manufacturers fell from 69 percent in 1992 to 63 percent in

1993, a decline of 6 percentage points.

Duty-Paid Value and U.S. Producers' Price

Approximately 95 percent of Category 360 imports from Kenya during

the year ending February 1994 entered under HTSUSA numbers

6302.21.2020--printed cotton pillowcases, other than bolster cases, not

trimmed, embroidered or napped; and 6302.31.2020--cotton pillowcases,

other than bolster cases, not printed, trimmed, embroidered or napped.

These pillowcases entered the U.S. at landed duty-paid values below

U.S. producers' prices for comparable cotton pillowcases.

[FR Doc. 94-12118 Filed 5-17-94; 8:45 am]

BILLING CODE 3510-DR-F