Federal Circuit Allows China Textile Inquiry

Apr. 29, 2005

The Court of Appeals for the Federal Circuit has lifted a preliminary injunction that prevented the U.S. Department of Commerce from considering petitions to limit imports on $1.3 billion of textiles from China.   In October 2004, American textile makers asked Commerce for limits on Chinese imports because the global quota system that regulated textile trade was expiring. 

On December 30, 2004, the Court of International Trade, responding to objections by clothing retailers, temporarily barred the United States from taking any action on the textile makers’ request.   The Federal Circuit decision to lift the injunction could allow the Bush administration to speed the imposition of curbs on imports of pants, shirts and underwear from China based on cases filed by the U.S. textile industry last year. 

Commerce, which said it was reviewing the court decision, must decide whether it will  formally review a separate series of petitions for caps on imports requested by the textile industry.  For more information, see U.S. Acts Against Chinese Textiles April 7, 2005).