GOT TO LIMIT CHINESE TEXTILE AND APPAREL

UNCLAS SECTION 01 OF 04 ANKARA 000129

SIPDIS

DEPT FOR EB/TPP/ABT - EHEARTNEY AND EUR/SE
COMMERCE FOR ITA/OTEXA/MARIA D'ANDREA
DEPT PASS USTR FOR LERRION
TREASURY FOR INTERNATIONAL AFFAIRS

SENSITIVE

E.O. 12958: N/A
TAGS: ETRD EIND KTEX TU
SUBJECT: GOT TO LIMIT CHINESE TEXTILE AND APPAREL
IMPORTS

SENSITIVE BUT UNCLASSIFIED. PLEASE HANDLE ACCORDINGLY.


1. (U) Summary: On December 23, the Foreign Trade
Undersecretariat (FTU) published a communique in the
State Gazette announcing surveillance and protective
measures against 42 categories of Chinese textile and
apparel imports. An FTU official told us that he
expects the GOT will impose limits in line with
safeguard procedures in section 242 of the Working
Party report. End Summary.


2. (U) Econoff and Econ Specialist discussed Turkey's
textile safeguard measures against Chinese imports with
FTU's Deputy Director General for Imports on January 6.
FTU identified 42 product categories for which Chinese
textile and apparel imports threatened market
disruption (see list below). Of these, 25 categories
had been limited by quotas in 2004, 15 were categories
for which quotas were lifted in earlier phases of
liberalization, and two categories had not previously
been limited by quota at all. According to FTU, limits
will be set in accordance with section 242 of the
Working Party report (e.g. allowing only a 7.5 percent
increase in imports),for maximum periods of 12 months
at a time, though these could be renewed to extend
quota protection to as much as a three years.


3. (SBU) Our interlocutor said that FTU had requested
consultations with the Chinese and had not yet
implemented new restrictions pending those
consultations. Note: On January 10, Reuters reported
that FTU would start distribution of Chinese import
quotas within the week, with import licenses under
these quantity restrictions valid for 3 months from
date of issuance. End Note. The GOC has not yet
responded to Turkey's request for talks, but did object
to the planned imposition of quantitative limits on
goods which had never been subject to them before. FTU
pointed out that Turkey is running a massive trade
deficit with China of USD 4 billion on two-way trade of
USD 4.4 billion.


4. (SBU) FTU said it is closely following safeguard
actions taken or considered by the USG and Argentina.
He told us he was surprised that the USG had not moved
forward with more Article 16 safeguard actions on non-
textile items against China. FTU asked that we
continue to share information on safeguards in the
future.


5. (U) Begin Informal Embassy Translation of Communique

Communique on Supervision and Safeguard Measures in
Import of Certain Textile and Ready-to-wear Products.

Application:

Article 1- The TOBB (Turkish Business Chambers),TIM
(Turkish Exporters Union),ITKIB (Istanbul Textile
Exporters Union),TUTSIS (Turkey Textile Industry
Employers Association),TGSD (Turkey Clothing
Industrialists Association),PTSB (Cotton Textile
Producers Union) have applied to the Foreign Trade
Undersecretariat, within the context of the regulation
no. 25318 of 12-16-03 amending the regulation on
surveillance and protection measures on imports of
certain textile products, to restrict quantities of
Chinese imports of goods listed in the annex, with the
reasoning that the increase in Chinese imports caused
market distortions and the threat of further market
distortions, and could create an obstacle to the
orderly development of the trade.

Market Disruption and Threat of Market Disruption:

Article 2- As a result of the inquiry carried out by
the Directorate-General for imports, it was determined
that;

- With those categories integrated to the General
Agreement on Customs Tariffs and Trade, imports of
Chinese origin can cause market disruption that can
threaten orderly development of the trade;
- In the categories that will be integrated as of
1/1/2005, imports originating in China threaten the
orderly development of trade due to the threat of
market disruption;
- For integrated categories, there is a sharp decrease
in their unit price that will make Chinese-origin
imports more attractive;
- China has invested significantly in the textile and
clothing sector;
- Increasing imports caused a decrease in the share of
domestic producers in the local market.

Decision:

Article 3- The Supervision and Safeguard Measures on
Importation of certain products
Board decided to implement protection measures against
increasing Chinese imports.

Limitation on the Quantity:

Article 4 - Within the context of the regulation
mentioned above, consultation talks will start with
China soon. Even though the official request for the
consultations to start has been made to Chinese
Government, it is also possible to start implementing
the quantity restrictions (quotas) on imports with an
implementation communique to be also issued soon in the
State Gazette.

Submission of information:

Article 5- Views on the decision of the Board can be
sent to the address given below by 1/14/05:

Prime Ministry Foreign Trade Undersecretariat
Imports Directorate-General
Textile Surveillance, and Protection Measures
Department
Inonu Bulv., No. 36, 06510 Emek/ Ankara
Tel: +90 312 204 52 49
Fax: +90 312 212 87 65 , or 212 87 11
Enforcement:

Article 6 - This communique enters into force on the
date of its issuance.

Execution:

Article 7- This communique is executed by the Minister
in charge of the Foreign Trade Undersecretariat.

Annex - CATEGORIES SUBJECT TO CONSULTATION

CATEGORY and DESCRIPTION

2 Woven fabrics of cotton, other than gauze, terry
fabrics, pile fabrics, chenille fabric situlle and
other fabrics
4 Shirts, T-shirts, lightweight fine knit roll, polo
or turtle necked jumpers and pullovers (other than of
wool or fine animal hair),undervests and the like,
knitted or crocheted
5 Jerseys, pullovers, slip-overs, waistcoats,
twinsets, cardigans, bed-jackets and jumpers (other
than jackets and blazers),anoraks, windcheaters,
waister jackets and the like, knitted or crocheted
6 Men's or boys' woven breeches, shorts other than
swimwear and trousers (including slacks),women's or
girls' woven trousers and slacks, of wool, of cotton or
of man-made fibers; lower parts of tracksuits with
lining, other than category 16 or 29, of cotton or of
man-made fibers
7 Women's or girls' blouses, shirts and shirt-
blouses, whether or not knitted or crocheted, of wool,
of cotton or of man-made fibers
8 Men's or boys' shirts, other than knitted or
crocheted, of wool, of cotton or of man-made fibers
9 Terry toweling and similar woven terry fabrics of
cotton; toilet linen and kitchen linen other than
knitted or crocheted, of terry toweling and woven terry
fabrics, of cotton
10 Gloves, mittens and mitts, knitted or crocheted
12 Panty-hose and tights, stockings, understockings,
socks, ankle-socks, sockettes and the like, knitted or
crocheted, other than for babies, including stockings
for varicose veins, other than products of category 70
13 Men's or boys' underpants and briefs, women's or
girls' knickers and briefs, knitted or crocheted, of
wool, of cotton or of man-made fibers
14 Men's or boys' woven overcoats, raincoats and
other coats, cloaks and capes, of wool, of cotton or of
man-made textile fibers (other than parkas) (of
category 21)
15 Women's or girls' woven overcoats, raincoats and
other coats, cloaks and capes, jackets and blazers, of
wool, of cotton or of man-made textile fibers (other
than parkas) (of category 21)
16 Men's or boys' suits and ensembles other than
knitted or crocheted, of wool, of cotton or of man-made
fibers, excluding ski suits; men's or boys' tracksuits
with lining, with an outer shell of a single identical
fabric, of cotton or of man-made fibers
17 Men's or boys' jackets and blazers; other than
knitted or crocheted, of wool, of cotton or of man-made
fibers
18 Men's or boys' singlets and other vests
underpants, briefs, nightshirts, pajamas, bathrobes,
dressing gowns and similar articles, other than knitted
or crocheted, women's or girls' singlets and other
vests, slips, petticoats, briefs, panties, night
dresses, pajamas, negligees, bathrobes, dressing gowns
and similar articles, other than knitted or crocheted
20 Bed linen, other than knitted or crocheted
21 Parkas; anoraks, windcheaters, waister jackets and
the like, other than knitted or crocheted of wool, of
cotton or of man-made fibers; upper parts of tracksuits
with lining other than category 16 and 29, of cotton or
of man-made fibers
24 Men's or boys' night shirts, pajamas, bathrobes,
dressing gowns and similar articles, knitted or
crocheted, women's or girls' night dresses, pajamas,
negligees, bathrobes, dressing gowns and similar
articles, knitted or crocheted
26 Women's or girls' dresses, of wool, of cotton or
of man-made fibers
27 Women's or girls' skirts, including divided skirts
28 Trousers, bib and brace overalls, breeches and
shorts (other than swimwear),knitted or crocheted, of
wool, of cotton or of man-made fibers
29 Women's or girls' suits, ensembles, other than
knitted or crocheted, of wool, of cotton or of man-made
fibers, excluding ski suits; women's or girls'
tracksuits with lining, with an outer shell of an
identical fabric, of cotton or of man-made fibers
31 Brassieres, woven, knitted or crocheted
36 Woven fabrics of continuous artificial fibers,
other than those for tires of category 114
39 Table linen, toilet and kitchen linen, other than
knitted or crocheted, other than of terry toweling or
similar terry fabrics of cotton
50 Woven fabrics of sheep or lambs' wool or of fine
animal hair
68 Babies' garments and clothing accessories,
excluding babies' gloves, mittens and mitts of
categories 10 and 87, and babies' stockings, socks and
sockettes, other than knitted or crocheted, of category
88
72 Swimwear, of wool, of cotton or of man-made fibers
73 Track suits of knitted or crocheted fabric, of
wool, of cotton or of man-made fibers
74 Women's or girls' knitted or crocheted suits and
ensembles, of wool, of cotton or of man-made fibers,
excluding ski suits
75 Men's or boys' knitted or crocheted suits and
ensembles, of wool, of cotton or of man-made fibers,
excluding ski suits
76 Men's or boys' industrial or occupational
clothing, other than knitted or crocheted; Women's or
girls' aprons, smock-overalls and other industrial or
occupational clothing, other than knitted or crocheted
78 Garments other than knitted or crocheted,
excluding garments of categories 6, 7, 8, 14, 15, 16,
17, 18, 21, 26, 27, 29, 68, 72, 76 and 77
83 Overcoats, jackets, blazers and other garments,
including ski suits, knitted or crocheted, excluding
garments of categories 4, 5, 7, 13, 24,26, 27, 28, 68,
69, 72, 73, 74, 75
84 Shawls, scarves, mufflers, mantillas, veils and
the like other than knitted or crocheted, of wool, of
cotton or of man-made fibers
85 Ties, bow ties and cravats other than knitted or
crocheted, of wool, of cotton or of man-made fibers
96 Non-woven fabrics and articles of such fabrics,
whether or not impregnated, coated, covered or
laminated
100 Textile fabrics impregnated, coated, covered or
laminated with preparations of cellulose derivatives or
of other artificial plastic materials
117 Woven fabrics of flax or of ramie
156 Blouses and pullovers knitted or crocheted of silk
or silk waste for women and girls
157 Garments, knitted or crocheted, other than those
of categories 1 to 123, 156
159 Dresses, blouses and shirt-blouses, not knitted or
crocheted, of silk or silk waste; Shawls, scarves,
mufflers, mantillas, veils and like, not knitted or
crocheted, of silk or silk waste; Ties, bow ties and
cravats of silk or silk waste.
End Informal Embassy Translation.
Edelman