PRESS RELEASE – November 3, 2005
Domestic Sock Makers Welcome New Limits on Chinese Sock Imports


FT. PAYNE, ALABAMA – The Domestic Manufacturers Committee (DMC) welcomes the action taken by the federal government on November 1 to re-impose a two month limit on the surging imports of subsidized socks from China.

“We are grateful for the action taken by the U.S. government to limit sock imports from China until January 1, 2006 to approximately 10.3 million dozen pair,� said Charles Cole, Chairman of The Domestic Manufacturing Committee (DMC). “Ambassador Portman and Secretary Gutierrez are honoring one of their recent commitments to address the domestic sock industry’s legitimate concerns. They are listening carefully to the domestic sock producers during these negotiations with China, and we appreciate that.� said Cole.

“And we also appreciate the strong interest shown in the domestic sock industry’s struggle with predatory trade flows by our Alabama Congressional Delegation, especially Congressman Aderholt and Senator Sessions and Shelby, as well as Members of Congress from North Carolina and other states.�, Cole continued.

The DMC was the prime mover of the sock safeguard petition. The American Manufacturing Trade Action Coalition (AMTAC), the National Coalition of Textile Organizations (NCTO), and the National Textile Association (NTA) joined the DMC in filing the sock safeguard petition on July 8, 2005.

The new two month limit on sock imports from China is higher than the DMC had hoped for, but past agreement language with China and the WTO tied the hands of the U.S. negotiating team. However, because of the merits of its case for sock safeguard limits on China, the DMC is confident that this two month limit will be replaced on January 1, 2006 with either a three year limit in a comprehensive agreement or another 12 month safeguard petition action if necessary.

“We have a very compelling case, both for market disruption and the threat thereof by highly subsidized Chinese sock imports� said Jim Schollaert, Washington representative of the DMC. “But even after winning our case, exporter-friendly WTO rules incorporated into our 2000 WTO Accession Agreement with China allowed the Chinese to achieve a huge 45% uplift in the next safeguard level, even as they exacerbated market disruption. However this kind of uplift will not be repeated next year.� The Chinese filled their first 12 month sock quota in just 6 months, by frontloading shipments.

“The sock case clearly demonstrates the need for the U.S. to tighten up the language in any future agreements designed to grant relief against predatory trade from China�, Schollaert said.

Sock imports from China have soared from less than 1 million dozen pair in 2001 to 58 million dozen pair in the 12 months ending in August 2005, even after the 12 month sock safeguard limit was first imposed on China on October 29, 2004. Domestic sock production has dropped from 207 million dozen pair in 2001 to 148 million dozen pair in 2004. Domestic sock mills still maintain almost 40 percent of the U.S. market share for socks, the highest share of any major apparel sector left in the U.S. apparel industry. However, this share has dropped steadily from 76 percent in 1999.

“It’s not too late to save the domestic sock industry from predatory trade practices. But we need the government to strengthen and strictly enforce our trade laws. We appreciate the American consumers continuing to do their part by looking for ‘Made-in-USA’ on the sock package�, said Charles Cole.

CONTACTS: Charles Cole, Chairman, Domestic Manufacturers Committee at (256) 845-7272; and Jim Schollaert, Washington Representative of the DMC at (703) 524-7197 or cell phone (202) 380-5039, jim.schollaert@verizon.net.