[Federal Register Volume 62, Number 93 (Wednesday, May 14, 1997)]
[Notices]
[Pages 26479-26480]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12676]


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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


Request for Public Comments on Bilateral Consultations with the 
Government of Pakistan

May 8, 1997.
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 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); Uruguay Round Agreements Act.

    On April 23, 1997, under the terms of Article 6 of the Uruguay 
Round Agreement on Textiles and Clothing (ATC) and the Uruguay Round 
Agreements Act, the Government of the United States requested 
consultations with the Government of Pakistan with respect to cotton 
yarn in Category 301pt. (HTS numbers 5205.21.0000, 5205.22.0000, 
5205.23.0000, 5205.24.0000, 5205.26.0000, 5205.27.0000, 5205.28.0000, 
5205.41.0000, 5205.42.0000, 5205.43.0000, 5205.44.0000, 5205.46.0000, 
5205.47.0000, 5205.48.0000), produced or manufactured in Pakistan.
    The purpose of this notice is to advise the public that, if no 
solution is agreed upon in consultations with the Government of 
Pakistan, the Government of the United States reserves its right to 
establish a twelve-month limit of not less than 2,319,944 kilograms for 
the entry and withdrawal from warehouse for consumption of cotton 
textile products in Category 301pt., produced or manufactured in 
Pakistan.
    A summary statement of serious damage, the actual threat of serious 
damage or the exacerbation of serious damage concerning Category 301pt. 
follows this notice.
    Anyone wishing to comment or provide data or information regarding 
the treatment of Category 301pt. or to comment on domestic production 
or availability of products included in Category 301pt. is invited to 
submit 10 copies of such comments or information to Troy H. Cribb, 
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 Pakistan.
    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

[[Page 26480]]

Category 301pt. Should such a solution be reached in consultations with 
the Government of Pakistan, 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 61 FR 66263, published on December 17, 1996).
Troy H. Cribb,
Chairman, Committee for the Implementation of Textile Agreements.

Summary of Statement in Support of Request for Consultations Under 
Article 6 of the ATC--Pakistan
Cotton Yarn--Category 301pt.
April 1997
    The USG has determined that the increase in imports of yarn for 
sale, 85 percent or more by weight combed cotton ring spun, Category 
301 Part, has caused serious damage, or actual threat thereof, to the 
industry in the United States producing like and/or directly 
competitive yarn for sale.
    Imports of the subject yarn from all sources increased by 64 
percent from 1994 to 1996, a net increase of 6.2 million kilograms. 
During this time, domestic shipments dropped substantially, falling by 
5.1 million kilograms. Orders lost to imported yarns also resulted in a 
1.5 percent reduction in production during this period, and caused 
inventories to increase sharply, by 50 percent. Increasing low-valued 
imports forced domestic margins to fall. Mills scrambled to cut prices 
in the last half of 1995 and 1996 to keep the remaining customers they 
had not already lost to imports. Despite price cuts, mills continued to 
lose orders, with unfilled orders dropping 30 percent from 1994 to 
1996.
    Capacity utilization declined as production and shipments fell, 
causing severe margin pressure as fixed costs had to be allocated over 
fewer sales, which cut gross margins. Seventy three percent of the 
companies reported declining profitability from 1994 to 1996 on the 
yarn in question. Seven mills fell victim to the margin squeeze and 
shut down, and production worker employment in the defined industry 
lost a total of 767 jobs between 1994 and 1996.
    The USG concluded that the increase in imports between 1994 and 
1996 was the direct cause of serious damage to the industry as 
reflected in the industry's declining shipments, the substantial 
increase in inventories, and the significant fall in unfilled orders 
and employment.
    The USG also determined that serious damage to this industry was 
directly attributable to the sharp and substantial increase in imports 
of the subject yarn from Pakistan. Imports from Pakistan had increased 
significantly, both absolutely and relative to domestic production and 
world imports, thereby increasing Pakistan's share of U.S. imports and 
the U.S. market. Pakistan's low-valued imports adversely affected U.S. 
domestic prices.
    There were no imports of the subject yarn from Pakistan before 
1995. U.S. imports of the subject yarn from Pakistan began in May 1995 
and reached 471,758 kilograms by the end of 1995. Imports from Pakistan 
of the subject yarn surged to 2,319,944 kilograms in year-ending 
January 1997, an increase of 392 percent above the total level imported 
during 1995.
    The USG further determined that the significant increase in imports 
of the subject yarn from all sources constituted the actual threat of 
serious damage or the exacerbation of serious damage to the defined 
domestic industry producing like and/or directly competitive yarn, and 
that, based on the sharp and substantial increase in imports of the 
subject yarn from Pakistan, such threat was attributable to Pakistan.
[FR Doc. 97-12676 Filed 5-13-97; 8:45 am]
BILLING CODE 3510-DR-F