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The U.S. Textile and Apparel Industry: Domestic Concerns

The Textiles Division of the Department of State is called the Textile Trade Policy and Agreements Division (TPA) and is part of the Office of Agricultural and Textile Trade Affairs (EB/TPP/ATT). For information on the Textiles Division contact: 202-647-1813.

The U.S. textile and apparel industry employed approximately 1.6 million workers in 1994 and is the largest U.S. industrial employer, with about 9.0 percent of the manufacturing work force. Since the early 1960's, the industry has faced growing foreign competition. The price advantage that low foreign labor costs create continues to be a problem for many U.S. textile and apparel companies.

To limit disruption of the U.S. market by surges in textile imports, Congress, under section 204 of the Agricultural Act of 1956, authorized the executive branch to negotiate textile restraint agreements. This law is the domestic authority to impose quotas for trading partners that are not World Trade Organization (WTO) members.

The Committee for the Implementation of Textile Agreements

The Committee for the Implementation of Textile Agreements (CITA) was established by Executive Order to administer the import control program and monitor imports of textile and apparel products to avoid damage to the U.S. market. The chief of the Textiles Division represents the State Department at CITA meetings and weighs the foreign policy implications of U.S. actions in this area. CITA is comprised of the following five agencies: State Department, Commerce Department, Office of the U.S. Trade Representative, Department of Treasury and Department of Labor. The Commerce Department chairs the committee.

When the growth in imports of a specific textile product or products causes serious damage or threat to the U.S. market, CITA may issue a call for consultations to countries contributing to that damage. The purpose of the consultation is to set an appropriate limit (also called a restraint or quota) on such imports. The decision to "call" is voted on by all five CITA agencies.

The Uruguay Round Agreement on Textiles and Clothing

The Agreement on Textiles and Clothing (ATC) entered into force on January 1, 1995 as part of the World Trade Organization (WTO) Agreements. Under the ATC, the U.S. can impose or reimpose quotas if textile imports are found to damage or threaten damage to the U.S. market. The ATC set in place a ten-year transitional program to systematically integrate textiles and clothing into the GATT/WTO. Textile products which are integrated will no longer be subject to U.S. quotas.

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