Thread: U.S. may restore sock trade safeguards

U.S. may restore sock trade safeguards

Imports hurt domestic business

Saturday, August 11, 2007

MARY ORNDORFF

News Washington correspondent



WASHINGTON - Tariff-free socks imported from Honduras have harmed the domestic sock industry enough to prompt the U.S. government into beginning the process of restoring trade safeguards, U.S. Rep. Robert Aderholt announced Friday.

U.S. Commerce Secretary Carlos Gutierrez told Aderholt on Friday that the government committee that implements textile agreements agreed on its own to take up the cause. The process could take months, but it was welcome news to American sock makers who have long argued that the Central American Free Trade Agreement was dismantling their industry with a flood of unfairly priced imports.

"This is a very positive step in that we are finally making progress on this issue," Aderholt, R-Haleyville, said in a prepared statement. "The administration is seeing that imports from these countries are no small thing."

Aderholt, whose district includes the sock mills of DeKalb County, has been trying for two years to get President Bush's administration to come through on a deal he made with them in exchange for his vote on CAFTA. In a last-minute deal to win Aderholt's vote, trade officials said they would negotiate a side agreement to phase out the sock tariffs over 10 years rather than immediately.

That didn't happen, and socks imported from Honduras are up 60 percent in the first five months of this year compared to the same time in 2006. Meanwhile, domestic production has plummeted by more than 20 percent, eliminating jobs along the way.

Aderholt acknowledged the long wait.

"Secretary Gutierrez's call is a much needed development that promises action against these predatory imports," Aderholt said.

The restoration of the tariffs, which would be about 14 percent, could take months, however. The process requires time for public comment, deliberation and consultation with Honduras. There is also a chance it could be reversed.

"There is going to be lots of opposition from importers and retailers, you can be sure," said Jim Schollaert, who represents the domestic sock industry in Washington. "But I'm happy they self-initiated the process and didn't make us file a petition, so that's a good sign."

If restored, the new tariffs would remain for three years.

"This will show Honduras that we mean business," Schollaert said.

E-mail: morndorff@bhamnews.com

Article Found in the Birmingham News
http://www.al.com/business/birminghamne ... xml&coll=2

We need to protect more industries with tarriffs.

Free trade should be FAIR TRADE. NOT SELL YOUR COUNTRY DOWN THE RIVER TRADE!!

Originally Posted by CCUSA

We need to protect more industries with tarriffs.

Free trade should be FAIR TRADE. NOT SELL YOUR COUNTRY DOWN THE RIVER TRADE!!

Exactly