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The US government is considering a request from the country's hosiery manufacturers to slap quotas on imports of Chinese-made socks.
And a final decision, which could lead to a new round of protectionism in the US sock industry, is expected in mid-October, just weeks before the country's presidental election.
The US Commerce Department's Committee for Implementation of Textile Agreements announced on Wednesday it "has determined that the request contains the information required to consider the request."
The complaint was filed on June 28 by the Hosiery Association, the American Manufacturing Trade Action Coalition, the National Council of Textile Organizations, and the National Textile Association. It requested limits on cotton, wool, and man-made fiber sock imports from China.
The petition is seeking measures similar to those won by US bra, dressing gown and knitted fabric manufacturers last November.
If the US Government accept the petition, socks import growth will be limited to 7.5 per cent as the petition requests, or another figure negotiated by US and Chinese officials.
China exported a total of 770 million pairs of socks with a total value of 1.51 billion yuan (US$182.6 million) from January to April, increases of 4 per cent and 9 per cent respectively, according to the Chinese General Administration of Customs.
In a compromise during its entry into the WTO in late 2001, China allowed other WTO members to launch special safeguard measures against textile imports that could cause market disruption.
The sock issue is the latest in a series of disputes between China and the United States, which has targeted Chinese furniture, lingerie, television sets and shrimps.
The US move increases Chinese textile exporters' concerns that more counter-import measures will be targeted at China after global multi-fibre textile quotas expire in 2005.
Analysts have urged textile makers and exporters to remain alert and not be over-optimistic about business opportunities in the post-quota era, warning that all types of trade barriers may increase after the quotas are eliminated.
Although Sino-US trade is increasing at a brisk pace, the looming US presidential poll means that it is encountering greater friction and disputes, analysts say.
(China Daily July 23, 2004)
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