The U.S. Upholstery Textile Makers Seek Tariffs Against Chinese Imports of Fabrics

The National Textile Assn. has filed a petition with the U.S. International Trade Commission seeking tariffs against what the trade group considers unfairly priced Chinese imports of fabrics used in upholstery and other furniture.

In particular, the NTA seeks a 125% tariff on chenille upholstery fabric and 75% tariff on all other fabrics pertaining to upholstery production cited in the petition.

The request is part of a July 15 petition submitted by the association, on behalf of the domestic broadwoven upholstery textile manufacturing industry. The petition cites significant increases in upholstery fabric imports to the United States from China since it was admitted to the World Trade Organization in 2001.

While the petition cites import figures of many fabrics, it also addresses imports of cut and sew kits from China, which it says totaled $2.4 million in 2001 and had grown to $333.6 million by 2005.

Imports of Chinese textiles have caused material injury in the form of widespread job losses, according to the petition.

"During this (2001-2010) period, the largest domestic plants producing upholstery fabric have been shuttered, resulting in significant loss of capacity, and thousands of workers who have lost their jobs," the petition says. "The declines in production, shipments, sales and market share are depriving domestic producers of the investment and capital needed to maintain and improve the competitiveness of domestic upholstery fabric plants. In short, there can be no question that imports of Chinese upholstery fabric and furniture parts of textile material are a significant cause of material injury to the domestic industry."

From 2004 to 2006, the petition says, there were 630,000 jobs lost in the domestic textile and apparel sector. It was unclear how many of these were specifically related to upholstery fabric production.

The report adds that the domestic industry also is threatened with further material injury due to the imports of Chinese made microdenier suede upholstery fabrics, including such fabrics entering the U.S. duty-free through foreign trade zone operations in North Carolina and Mississippi.

"In the last decade, Chinese goods have flooded the market at record rates and at uncompetitive prices," the petition says. "Chinese companies grabbed market share at the expense of American (upholstered textile manufacturers)."

The petition also claims that the Chinese government subsidies of textile producers, and also keeps the Chinese currency undervalued, making the nation's products cheaper in U.S. dollars.

One U.S. manufacturing executive quoted in the report said that if he had free labor, his fabrics would sell for 20% less, but that comparable Chinese-made goods would still be 50% cheaper.

U.S. fabric manufacturers listed as participating in the petition are American Silk Mills, David Rothschild Co., Milliken and Co., Raxon Fabrics, Sunbury Textile Mill, Valdese Weavers, Victor Textiles and Wear-Best Sil-Tex Mills Ltd.

According to the filing, the petitioners believe that they represent more than half of all U.S. production.