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

COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS

Request for Public Comments on Bilateral Textile Consultations

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

Textiles and Textile Products

December 30, 1994.

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

ACTION: Notice.

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FOR FURTHER INFORMATION CONTACT: Ross Arnold, International Trade

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

Commerce, (202) 482-4212. For information on categories on 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 November 28, 1994, under the terms of the Bilateral Textile

Agreement of September 3, 1991, as amended and extended, between the

Governments of the United States and Thailand, the United States

Government requested consultations with the Government of Thailand with

respect to Categories 352/652 (underwear), Category 603 (staple fiber

yarn) and Category 670-L (luggage).

The purpose of this notice is to advise the public the request to

consult was based on year ending August 1994 trade of 1,505,169 dozen

for Categories 352/652; 792,415 kilograms for Category 603; and

19,929,610 kilograms for Category 670-L.

Summary market statements concerning Categories 352/652, 603 and

670-L follow this notice.

Anyone wishing to comment or provide data or information regarding

the treatment of Categories 352/652, 603 and 670-L, under the agreement

with the Government of Thailand, or to comment on domestic production

or availability of products included in the categories, 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 Thailand.

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 bilateral

textile agreement or any other appropriate agreement between the

Governments of the United States and Thailand or the implementation

thereof 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 352/652, 603 and 670-L. Should such a solution be

reached in consultations with the Government of Thailand, 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--Thailand

Category 352/652--Cotton and Manmade Fiber Underwear

October 1994

Import Situation and Conclusion

U.S. imports of cotton and manmade fiber underwear, Category 352/

652, from Thailand reached 1,505,169 dozen for the year ending August

1994, 27 percent above the 1,183,686 dozen imported in the year ending

August 1993. During the first eight months of 1994, imports from

Thailand were 989,385 dozen, 23 percent above their January-August 1993

level.

The sharp and substantial increase in Category 352/652 imports from

Thailand is causing a real risk of disruption in the U.S. market for

cotton and manmade fiber underwear.

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

U.S. production of cotton and manmade fiber underwear, Category

[[Page 2082]] 352/652, declined from 175,542,000 dozen in 1992 to

168,802,000 dozen in 1993, a decline of 4 percent. Production continued

to decline in 1994, falling to 81,713,000 dozen in the first half for

1994, 8 percent below the January-June 1993 production level.

In contrast, U.S. imports of cotton and manmade fiber underwear

increased from 65,507,000 dozen in 1992 to 79,962,000 dozen in 1993, a

22 percent increase. Category 352/652 imports continued to increase in

1994, reaching 59,204,000 dozen in the first eight months of 1994, 12

percent above the January-August 1993 import level.

The ratio of imports to domestic production increased from 37

percent in 1992 to 47 percent in 1993, and reached 51 percent during

the first half of 1994. The share of this market held by domestic

manufacturers fell from 73 percent in 1992 to 68 percent in 1993, a

decline of five percentage points, and fell to 66 percent during the

first half 1994.

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

Approximately 71 percent of Category 352/652 imports from Thailand

during the year ending August 1994 entered under HTSUSA numbers

6107.11.0010--men's knitted cotton underpants and briefs;

6108.21.0010--women's knitted cotton briefs and panties; and

6207.11.0000--men's and boys' woven cotton underpants and briefs. This

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

producers' prices for comparable underwear.

Market Statement--Thailand

Category 603--85 Percent or More Artificial Staple Fiber Yarn

October 1994

Import Situation and Conclusion

U.S. imports of Category 603, 85 percent or more artificial staple

fiber yarn, from Thailand reached 792,415 kilograms for the year ending

August 1994, more than double the 368,987 kilograms imported in the

year ending August 1993. During the first eight months of 1994, imports

from Thailand were 683,140 kilograms, two and half times their January-

August 1993 level, and 84 percent above their calendar year 1993 level.

The sharp and substantial increase in Category 603 imports from

Thailand is causing a real risk of disruption in the U.S. market for 85

percent or more artificial staple fiber yarn.

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

U.S. production of 85 percent or more artificial staple fiber yarn,

Category 603, declined from 36,694,000 kilograms in 1991 to 30,964,000

kilograms in 1993, a 16 percent decrease. By contrast, U.S. imports of

Category 603, nearly tripled increasing from 3,638,000 kilograms in

1991 to 9,886,000 kilograms in 1993. Imports continued to increase in

1994 reaching 7,714,000 kilograms in the first eight months, 24 percent

above the January-August 1993 level.

The ratio of imports to domestic production more than tripled,

increasing from 10 percent in 1991 to 32 percent in 1993. The share of

this market held by domestic manufacturers fell from 91 percent in 1991

to 76 percent in 1993, a decline of 15 percentage points.

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

All of Category 603 imports from Thailand during 1994 entered under

HTSUSA numbers 5510.11.0000--single artificial fiber staple yarn; and

5510.12.0000--multiple artificial fiber staple yarn. These yarns

entered the U.S. at landed duty-paid values below U.S. producers'

prices and below the landed duty-paid values of other major foreign

suppliers to the U.S. market for comparable yarn.

Market Statement--Thailand

Category 670-L--Manmade Fiber Luggage

October 1994

Import Situation and Conclusion

U.S. imports of Category 670-L, manmade fiber luggage, from

Thailand reached 19.9 million kilograms for the year ending August

1994, 41 percent above the 14.1 million kilograms imported a year

earlier. During the first eight months of 1994, imports from Thailand

were 13.3 million kilograms, 44 percent above their January-August 1993

level. During the year ending August 1994, Thailand became the largest

supplier of manmade fiber luggage to the U.S., accounting for 24

percent of total Category 670-L imports. A year earlier, Thailand was

the third largest supplier, accounting for 18 percent of total Category

670-L imports.

The sharp and substantial increase in Category 670-L imports from

Thailand is causing a real risk of market disruption in the U.S. market

for manmade fiber luggage.

U.S. Production, Import Penetration and Market Share

U.S. production of manmade fiber luggage, Category 670-L, measured

in kilograms of fabric consumed in the production of luggage, declined

every year since 1989 except for 1992, when production increased 1

percent. Production in 1993 declined 3 percent from the 1992 level and

was 10 percent below the 1989 level. In contrast, Category 670-L

luggage imports, measured in kilograms of fabric content, increased

every year since 1989 except in 1991, when imports decreased 3 percent

from the 1990 level. However, imports of category 670-L increased 16

percent from 1991 to 1993 and are up 10 percent for the first eight

months of 1994 when compared to the January-August 1993 level.

The ratio of imports to domestic production in Category 670-L

luggage increased to 250 percent in 1993 from 195 percent in 1989. The

domestic manufacturers' share of this market fell from 34 percent in

1989 to 29 percent in 1993, a decline of 5 percentage points.

Duty-Paid Values and U.S. Producers' Prices

Approximately 94 percent of Category 670-L imports from Thailand

during 1994 entered the U.S. under HTSUSA numbers 4202.12.8070--

suitcases and similar containers of manmade fiber, and 4202.92.3030--

travel bags and similar bags of manmade fiber. The prices of these

imports of luggage from Thailand are lower than the prices of

comparable U.S. produced luggage.

[FR Doc. 95-304 Filed 1-5-95; 8:45 am]

BILLING CODE 3510-DR-F