US curbs on Chinese imports to help boost Pakistan's socks export

Pakistan will be benefited if the US re-imposes quota on socks from China.
Commenting on the reports that the US may re-impose quotas on socks from China under the textile safeguards accepted by China before joining the World Trade Organisation (WTO), the textile industry sources here said that Pakistan's share in the US market was less than the other countries exports.
They said if the US government, which under tremendous pressure, restricted the imports from China, Pakistan would be able to increase its share in the US market.
Quoting the report on the "Emerging Textiles", a web-site on textile and clothing trade information, local exporters revealed that the US action would encourage the small and medium-sized socks manufacturers mainly based in Punjab.
According to "Emerging Textiles", four US industry associations have asked Washington to impose quotas on sock imports from China after these dramatically soared in the past three years.
In the new test of the US determination to curb shipments from China in the post-quota period, limits would be decided under the textile safeguards accepted by China under the WTO, textile analysts here said. The associations, including the hosiery association, on Monday filed a petition before the US administration, requesting the trade officials to limit the import of socks from China.
The US inter-agency, "Committee for the Implementation of Textile Agreements" (Cita), will say before July 20 if it accepts the request for initiating an investigation.
Three more months will be needed before the decision to re-impose quotas in category 632 is taken.
The Cita has already re-imposed limits on imports from China in three other de-controlled categories.
Under the WTO agreement with China, quotas may only apply for 12 months, although a new investigation may be initiated at the end of the period. The cap would limit the growth in imports from China at 7.5 percent of the already reached level.
China's shipments to the US dramatically surged since the quotas were removed in category 632. China's share of total US imports in this category soared from 1.48 percent up to 55.73 percent.
Other supplies were confronted with a fall in their shares of total US imports, including El Salvador, Italy, Mexico and South Korea. India, Ecuador and Colombia enjoyed a rise in their shipments at the same time, but from very low levels.
Partly due to elimination of quota costs in China, the average unit value of products imported from China in category 632 fell from 7.23 dollar per dozen of pairs in 2001 down to 3.52 dollars in the January-April period this year.
The analysts pointed out that if China's share of total US imports already reached more than 50 percent in category 632, its share of total US consumption would remain much lower.
The US producers still had about 40 percent of domestic consumption of socks in 2003, according to data circulated this week, against a level of 76 percent in 1999.