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February 12, 2001 Honorable Robert Zoellick United States Trade Representative 600 17Th Street NW Washington, D.C

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February 12, 2001 Honorable Robert Zoellick United States Trade Representative 600 17Th Street NW Washington, D.C February 12, 2001 Honorable Robert Zoellick United States Trade Representative 600 17th Street NW Washington, D.C. 20508 Dear Ambassador Zoellick: On behalf of our associations, we congratulate you on your confirmation. On the occasion of the start of this new administration, we take this opportunity to raise an issue of vital importance to America's economy and foreign trade policy and its leadership in the international trade arena. For some thirty years, United States' textile policy has been guided by an Executive Order drafted for another era, when there were more than twice the number of U.S. textile and apparel manufacturing jobs there are today and the total U.S. textile and apparel market was less than one-thirtieth of the size it is today. The result is that America does not have a current textile policy addressing textile and apparel trade. As former U.S. Trade Representative Charlene Barshefsky noted immediately following her departure, the U.S. has to tackle its "Achilles heels, such as textiles." We urge the Bush Administration to establish a forward-looking textile policy and we have the following suggestions for the essential considerations and elements of that policy. As a result of the Uruguay Round Agreements, restrictions on textile and apparel imports through an extensive system of country-specific quotas will end during this administration's watch, at midnight on December 31, 2004. Ensuring a smooth transition to this changed environment is in the mutual interests of textile and apparel manufacturers, importers, retailers and consumers. In recognition of this important objective, a forum should be hosted by the Administration for all of the interests involved, to explore how this country is preparing for the changed circumstances and what opportunities are presented. Among the issues that should be addressed are: • the progress of adjustment plans of domestic manufacturers, • what steps would ensure the smoothest transition while simultaneously serving and advancing America's foreign policy, international trade and economic objectives, and • appropriate reorganization of the bureaucracy that was established to implement and monitor quotas but must now restructure and focus on expanding and opening foreign markets. The Committee for the Implementation of Textile Agreements, CITA, is the inter-agency committee created by Executive Order in 1972 to manage the negotiation of bilateral quota agreements and monitor the trade under those agreements. However, with the Uruguay Round Agreement on Textiles and Clothing’s elimination of bilateral textile agreements among World Trade Organization members, there is a real need to re-think the role of CITA in U.S. trade, economic and foreign policy. The WTO ten-year transition was intended to allow gradual liberalization and a smooth elimination of 2 quota restrictions. However, we are now in the seventh year of that decade-long liberalization, with very few changes to the system of protection the United States has maintained since the 1970’s. CITA needs to be updated to address modern trade issues, such as market opening initiatives, and to meet current United States and WTO standards, particularly introducing transparency, public access to CITA decisions and oversight by senior level trade officials. We would greatly appreciate the opportunity to meet with you to discuss these issues and to plan for the forum we propose. We look forward to hearing from you. Sincerely, Larry Martin Robert Verdisco Tracy Mullin Laura E. Jones President President President Executive Director AAFA IMRA NRF USA-ITA 1601 N. Kent St. 1700 N. Moore St. 325 7th St. NW 13 E. 16th St. Suite 1200 Suite 2250 Suite 1100 Sixth Floor Arlington, VA 22208 Arlington, VA 22209 Washington, D.C. 20004 New York, NY 10003 703-524-1864 703-841-2300 202-783-7971 212-463-0089 cc: Secretary of State Colin Powell Secretary of the Treasury Paul O’Neill Secretary of Commerce Donald Evans Secretary of Labor Elaine Chao Joshua Bolten, Assistant to the President and Deputy Chief of Staff for Policy.
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