Textile and apparel groups from 17 countries sent letters on September 12 urging US congressional leaders to support, and for the Bush Administration to extend, the Textile Monitoring Program (TMP) to China once the remaining textile and apparel safeguards are removed on January 1, 2009.

Textile and apparel groups from Colombia, Costa Rica, the Dominican Republic, Ecuador, El Salvador, Ethiopia, Honduras, Kenya, Lesotho, Madagascar, Mauritius, Mexico, Nicaragua, Peru, Philippines, South Africa and the US signed the letter.

The letter stated that, since 2001, the Chinese share of the US apparel market has increased from an estimated 15% to 60% in the categories where quotas have been removed. Chinese exports of textiles and apparel to the US have increased from $6.5 billion to $32 billion since 2001, a rise of nearly 400%.

Furthermore, it claims that when quotas on currently safeguarded products were briefly removed in 2005, Chinese manufacturers dropped prices by 40% and increased exports by 600%. Since the EU removed its safeguards on January 1, Chinese exports have reportedly risen by 34% in apparel categories that were previously under safeguard. Prices in some categories have fallen by as much as 44%. Meanwhile, China announced last month that it was increasing subsidisation of its textile sector by raising the export tax rebate for textiles. It also said it would be increasing other subsidies for the industry.