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Media General News Service
Media General News Service
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WASHINGTON—Some hard-hit Carolina textile and apparel manufacturers are bracing for another blow to their industry when restrictions on Chinese imports expire at the end of the year.
The lifting of the trade restrictions in 2005 prompted a surge in imports of cheaper products from China -- like fabric, socks, pants and shirts – that U.S. manufacturers say caused serious pain until federal trade officials reinstated them until the end of this year.
“When the Chinese door opened it really put us in a bind. We really took a beating,” said Dennis Martin, president of North Carolina Sock in Hickory. “We don’t know what’s going to happen this time when they come off, but we know there’s nothing we can do about it.”
The number of textile and apparel companies manufacturing in North and South Carolina has dwindled in recent years, as international trade deals facilitated a shift in production to countries in Asia and Central America where workers earn less.
Trade barriers between China and the United States have dropped since the Asian manufacturing powerhouse entered the World Trade Organization in 2001.
With rules limiting the amount of Chinese textiles and apparel that can enter the United States again set to expire, several North and South Carolina lawmakers are urging federal trade officials to carefully monitor Chinese imports.
Rep. Howard Coble, R-N.C., and Rep. John Spratt, D-S.C., sent a letter in September urging Bush administration trade officials to set up a monitoring program to track the flow of Chinese products when the import restrictions are removed, and reinstate them if necessary.
In 2005, the letter noted, apparel exports from China jumped 600 percent while prices dropped by 40 percent before the limitations were reinstated through the end of this year.
“Only the quick re-imposition of quotas prevented massive job losses for U.S. textile and apparel manufacturing,” the letter said.
“We have to keep a sharp lookout on China,” Coble said in an interview. “This could potentially be devastating.”
Under pressure from Congress, the International Trade Commission said in October that it would track Chinese textile and apparel imports when the restrictions are lifted.
Both supporters and opponents of lifting the restrictions say it’s unclear whether a similar surge will occur next year.
Cass Johnson, president of the National Council of Textile Organizations, noted that China recently increased government subsidy payments on textile exports and that exports of products like pants, shirts and underwear to the United States from
China have increased in recent months.
"A number of factors have moved together that could support a surge. But we don’t know what will happen this time,” he said.
Retail groups representing major importers like Wal-Mart have fought to lift the restrictions on Chinese imports, arguing that cheaper imported products are in the consumers’ interest.
Erik Autor, international trade counsel for the National Retail Federation, said a flood of Chinese apparel is unlikely next year.
“With the state of the economy, retail sales are down considerably, and retailers have been ratcheting back orders,” he said.
Many surviving North Carolina and South Carolina textile and apparel companies have moved to a mix of domestically-produced and imported products to stay competitive.
Rusty Holt, president of Holt Hosiery Mills in Burlington, N.C., manufactures in North Carolina, but also imports goods from
Europe, China, South Korea and Pakistan. He said he expects the dropping of Chinese trade barriers will put pressure on him to reduce prices of pantyhose and tights his company makes.
Because of that, within a few years, he said, “we’ll likely do less production in this country and more importing, I expect.”
“I’d rather make everything in this country if I could. Buying everything from somewhere else isn’t good for the economy,” he said.
Sean Mussenden can be reached at smussenden@mediageneral.com or 202-662-7668
The lifting of the trade restrictions in 2005 prompted a surge in imports of cheaper products from China -- like fabric, socks, pants and shirts – that U.S. manufacturers say caused serious pain until federal trade officials reinstated them until the end of this year.
“When the Chinese door opened it really put us in a bind. We really took a beating,” said Dennis Martin, president of North Carolina Sock in Hickory. “We don’t know what’s going to happen this time when they come off, but we know there’s nothing we can do about it.”
The number of textile and apparel companies manufacturing in North and South Carolina has dwindled in recent years, as international trade deals facilitated a shift in production to countries in Asia and Central America where workers earn less.
Trade barriers between China and the United States have dropped since the Asian manufacturing powerhouse entered the World Trade Organization in 2001.
With rules limiting the amount of Chinese textiles and apparel that can enter the United States again set to expire, several North and South Carolina lawmakers are urging federal trade officials to carefully monitor Chinese imports.
Rep. Howard Coble, R-N.C., and Rep. John Spratt, D-S.C., sent a letter in September urging Bush administration trade officials to set up a monitoring program to track the flow of Chinese products when the import restrictions are removed, and reinstate them if necessary.
In 2005, the letter noted, apparel exports from China jumped 600 percent while prices dropped by 40 percent before the limitations were reinstated through the end of this year.
“Only the quick re-imposition of quotas prevented massive job losses for U.S. textile and apparel manufacturing,” the letter said.
“We have to keep a sharp lookout on China,” Coble said in an interview. “This could potentially be devastating.”
Under pressure from Congress, the International Trade Commission said in October that it would track Chinese textile and apparel imports when the restrictions are lifted.
Both supporters and opponents of lifting the restrictions say it’s unclear whether a similar surge will occur next year.
Cass Johnson, president of the National Council of Textile Organizations, noted that China recently increased government subsidy payments on textile exports and that exports of products like pants, shirts and underwear to the United States from
China have increased in recent months.
"A number of factors have moved together that could support a surge. But we don’t know what will happen this time,” he said.
Retail groups representing major importers like Wal-Mart have fought to lift the restrictions on Chinese imports, arguing that cheaper imported products are in the consumers’ interest.
Erik Autor, international trade counsel for the National Retail Federation, said a flood of Chinese apparel is unlikely next year.
“With the state of the economy, retail sales are down considerably, and retailers have been ratcheting back orders,” he said.
Many surviving North Carolina and South Carolina textile and apparel companies have moved to a mix of domestically-produced and imported products to stay competitive.
Rusty Holt, president of Holt Hosiery Mills in Burlington, N.C., manufactures in North Carolina, but also imports goods from
Europe, China, South Korea and Pakistan. He said he expects the dropping of Chinese trade barriers will put pressure on him to reduce prices of pantyhose and tights his company makes.
Because of that, within a few years, he said, “we’ll likely do less production in this country and more importing, I expect.”
“I’d rather make everything in this country if I could. Buying everything from somewhere else isn’t good for the economy,” he said.
Sean Mussenden can be reached at smussenden@mediageneral.com or 202-662-7668