Multiple measures to help textile companies break through trade protection barriers

Multiple measures have been taken to help textile companies break through trade protection barriers

In the past year, China’s textile and apparel industry encountered a total of 15 foreign trade remedy investigations, with the number of cases increasing by 15.3% year-on-year, and the amount involved in the case being US$2.414 billion, an increase of 15.6% year-on-year.

In the new year, as an important part of China’s “four-body linkage” response to trade frictions, the China Textile Import and Export Chamber of Commerce will continue to work in the Trade Remedy and Investigation Bureau of the Ministry of Commerce. Under the guidance of the Ministry of Commerce and with the cooperation of local commercial authorities and enterprises, we will help enterprises actively respond to and safeguard industry interests, conduct in-depth analysis of case characteristics, accurately promote response work, optimize the legal service team, and protect textile and clothing foreign trade highQualityDevelopment.

In-depth analysis of case characteristics

According to the analysis of the China Chamber of Commerce for Import and Export of Textiles, last year, trade remedy investigation cases initiated against textile and apparel products showed many characteristics. First, the initiating countries are concentrated, key products are prominent, and the amount involved is relatively large. In 2022, more than half of the 15 investigations into textile and apparel products came from Indonesia, India and the European Union. Many investigations involved hundreds of millions of dollars. Among them, the EU polyester high-strength yarn review The amount involved in the investigation is US$230 million, the amount involved in the anti-dumping investigation of Indiaviscose yarn is US$256 million, and the amount involved in the investigation of Indonesia’s three safeguard measures is US$1.13 billion.

Secondly, EU cases have strong chain effects and are difficult to deal with. In 2022, the EU launched a sunset review investigation, a mid-term review investigation and a separate anti-dumping investigation against Hailide into China’s polyester high-strength yarn. “Looking back at the results of previous investigations, once a certain type of product is investigated by the EU for trade remedies, it will often face a series of investigations multiple times, and the review investigation usually does not modify the original tax rate, but determines whether dumping and damage will continue or not. If it happens again, it will be decided to cancel or extend the original measures. The EU’s investigation front is long and difficult, and industry companies are less motivated to defend and respond.” Xiao Ling, deputy secretary-general of the China Chamber of Commerce for Import and Export of Textiles, said.

Thirdly, safeguard measures investigate products in a wide range and last for a long time. In 2002, the first safeguard measure investigation encountered by China’s textile and apparel industry came from Venezuela. In 2022 alone, Turkey and Indonesia launched 4 safeguard investigation investigations against nylon products, curtains, yarns and fabric products, involving a total of 126 tax numbers and a total amount of approximately US$1.4 billion. “The launch of the review investigation means that the period of restrictive measures for the companies involved has been extended again. At the same time, paying attention to the radiation effects of safeguard measures will also become the focus of the Textile Chamber of Commerce’s follow-up work.” Xiao Ling said.

Actively organize industry defense

“In response to the 15 textile and apparel trade remedy cases in 2022 and the 11 transfer cases in 2021, the Textile Chamber of Commerce promptly released case warning and filing information, quickly analyzed the situation of the products formally filed for investigation, and reported the case status to the Ministry of Relief Bureau. , and notify relevant provincial departments and enterprises. For key cases, a response meeting will be held after soliciting opinions from all parties, and enterprises will be organized to carry out industry defense. The Chamber of Commerce will promptly publish case filing information and ruling results on the official website and public account, and widely notify enterprises.” Xiao Ling said.

In response to the Peruvian clothing safeguard measures case, the Textile Chamber of Commerce actively organized companies to participate in the industry’s non-injury defense. On December 24, 2021, Peru launched a safeguard investigation on clothing products, involving a total amount of US$734 million. The Textile Chamber of Commerce organized and held an online response coordination meeting in a timely manner, and finally 11 companies participated in the industry’s non-injury defense. “During the period, the Textile Chamber of Commerce held several seminars on case response work, determined the key products for defense, and analyzed the difficulties in response. It submitted defense opinions three times on temporary measures and product exclusions, case filing announcements and technical reports, and Peruvian import and export data; Actively participate in online hearings and express objections.” Xiao Ling said that at the end of April 2022, the Textile Chamber of Commerce sent a letter to the three Peruvian ministries and commissions to express opinions on temporary measures for the case. Thanks to our efforts, in mid-May 2022, the Peruvian Multisectoral Commission ruled not to take interim measures. In August, the Peruvian investigation agency announced the end of the investigation process and submitted the technical report on this case to the Multisectoral Committee for review. However, due to pressure from many parties, the technical report and final decision on the secret recipe have not yet been officially disclosed.

When faced with the anti-dumping case of Indian viscose yarn, the Textile Chamber of Commerce made every effort to safeguard the rights and interests of Chinese companies. On September 30, 2022, the Indian Ministry of Commerce and Industry launched an anti-dumping investigation into viscose yarn, with the products involved amounting to US$256 million. In this regard, the Textile Chamber of Commerce successfully organized four companies, Xinxiang Chemical Fiber, Jilin Chemical Fiber, Yibin Hester, and Jilin Aika, to participate in the industry defense and submit defense opinions in a timely manner. “In November 2022, India held a technical discussion on Product Control Numbering (PCN). Representatives from the Textile Chamber of Commerce attended the meeting to reflect their interest demands. At the same time, Indianimporters and downstream representatives expressed their opposition. Opinion. Later, the Indian investigation agency accepted our opinion and decided to include the viscose filament produced by the Indian plaintiff’s copper tube spinning (SSY) technology within the scope of the products under investigation. It did not accept the Indian plaintiff’s proposal of not distinguishing between dyed and undyed. Opinions. In this regard, we have determined the boundaries between product control codes and the scope of the products under investigation.An initial victory was achieved. “Xiao Ling said.