US embassy cable - 05ANKARA129

UNCLAS SECTION 01 OF 04 ANKARA 000129 
 
SIPDIS 
 
DEPT FOR EB/TPP/ABT - EHEARTNEY AND EUR/SE 
COMMERCE FOR ITA/OTEXA/MARIA D'ANDREA 
DEPT PASS USTR FOR LERRION 
TREASURY FOR INTERNATIONAL AFFAIRS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ETRD, EIND, KTEX, TU 
SUBJECT:  GOT TO LIMIT CHINESE TEXTILE AND APPAREL 
IMPORTS 
 
SENSITIVE BUT UNCLASSIFIED.  PLEASE HANDLE ACCORDINGLY. 
 
1. (U) Summary:  On December 23, the Foreign Trade 
Undersecretariat (FTU) published a communique in the 
State Gazette announcing surveillance and protective 
measures against 42 categories of Chinese textile and 
apparel imports.  An FTU official told us that he 
expects the GOT will impose limits in line with 
safeguard procedures in section 242 of the Working 
Party report.  End Summary. 
 
2. (U) Econoff and Econ Specialist discussed Turkey's 
textile safeguard measures against Chinese imports with 
FTU's Deputy Director General for Imports on January 6. 
FTU identified 42 product categories for which Chinese 
textile and apparel imports threatened market 
disruption (see list below). Of these, 25 categories 
had been limited by quotas in 2004, 15 were categories 
for which quotas were lifted in earlier phases of 
liberalization, and two categories had not previously 
been limited by quota at all.  According to FTU, limits 
will be set in accordance with section 242 of the 
Working Party report (e.g. allowing only a 7.5 percent 
increase in imports), for maximum periods of 12 months 
at a time, though these could be renewed to extend 
quota protection to as much as a three years. 
 
3. (SBU) Our interlocutor said that FTU had requested 
consultations with the Chinese and had not yet 
implemented new restrictions pending those 
consultations.  Note:  On January 10, Reuters reported 
that FTU would start distribution of Chinese import 
quotas within the week, with import licenses under 
these quantity restrictions valid for 3 months from 
date of issuance. End Note.  The GOC has not yet 
responded to Turkey's request for talks, but did object 
to the planned imposition of quantitative limits on 
goods which had never been subject to them before.  FTU 
pointed out that Turkey is running a massive trade 
deficit with China of USD 4 billion on two-way trade of 
USD 4.4 billion. 
 
4. (SBU) FTU said it is closely following safeguard 
actions taken or considered by the USG and Argentina. 
He told us he was surprised that the USG had not moved 
forward with more Article 16 safeguard actions on non- 
textile items against China.  FTU asked that we 
continue to share information on safeguards in the 
future. 
 
5. (U) Begin Informal Embassy Translation of Communique 
 
Communique on Supervision and Safeguard Measures in 
Import of Certain Textile and Ready-to-wear Products. 
 
Application: 
 
Article 1-  The TOBB (Turkish Business Chambers), TIM 
(Turkish Exporters Union), ITKIB (Istanbul Textile 
Exporters Union), TUTSIS (Turkey Textile Industry 
Employers Association), TGSD (Turkey Clothing 
Industrialists Association), PTSB (Cotton Textile 
Producers Union) have applied to the Foreign Trade 
Undersecretariat, within the context of the regulation 
no. 25318 of 12-16-03 amending the regulation on 
surveillance and protection measures on imports of 
certain textile products, to restrict quantities of 
Chinese imports of goods listed in the annex, with the 
reasoning that the increase in Chinese imports caused 
market distortions and the threat of further market 
distortions, and could create an obstacle to the 
orderly development of the trade. 
 
Market Disruption and Threat of Market Disruption: 
 
Article 2- As a result of the inquiry carried out by 
the Directorate-General for imports, it was determined 
that; 
 
- With those categories integrated to the General 
Agreement on Customs Tariffs and Trade, imports of 
Chinese origin can cause market disruption that can 
threaten orderly development of the trade; 
- In the categories that will be integrated as of 
1/1/2005, imports originating in China threaten the 
orderly development of trade due to the threat of 
market disruption; 
- For integrated categories, there is a sharp decrease 
in their unit price that will make Chinese-origin 
imports more attractive; 
- China has invested significantly in the textile and 
clothing sector; 
- Increasing imports caused a decrease in the share of 
domestic producers in the local market. 
 
Decision: 
 
Article 3- The Supervision and Safeguard Measures on 
Importation of certain products 
Board decided to implement protection measures against 
increasing Chinese imports. 
 
Limitation on the Quantity: 
 
Article 4 - Within the context of the regulation 
mentioned above, consultation talks will start with 
China soon.  Even though the official request for the 
consultations to start has been made to Chinese 
Government, it is also possible to start implementing 
the quantity restrictions (quotas) on imports with an 
implementation communique to be also issued soon in the 
State Gazette. 
 
Submission of information: 
 
Article 5- Views on the decision of the Board can be 
sent to the address given below by 1/14/05: 
 
Prime Ministry Foreign Trade Undersecretariat 
Imports Directorate-General 
Textile Surveillance, and Protection  Measures 
Department 
Inonu Bulv., No. 36, 06510 Emek/ Ankara 
Tel: +90 312 204 52 49 
Fax: +90 312 212 87 65 , or 212 87 11 
Enforcement: 
 
Article 6 - This communique enters into force on the 
date of its issuance. 
 
Execution: 
 
Article 7- This communique is executed by the Minister 
in charge of the Foreign Trade Undersecretariat. 
 
Annex - CATEGORIES SUBJECT TO CONSULTATION 
 
CATEGORY and DESCRIPTION 
 
2    Woven fabrics of cotton, other than gauze, terry 
fabrics, pile fabrics, chenille fabric situlle and 
other fabrics 
4    Shirts, T-shirts, lightweight fine knit roll, polo 
or turtle necked jumpers and pullovers (other than of 
wool or fine animal hair), undervests and the like, 
knitted or crocheted 
5    Jerseys, pullovers, slip-overs, waistcoats, 
twinsets, cardigans, bed-jackets and jumpers (other 
than jackets and blazers), anoraks, windcheaters, 
waister jackets and the like, knitted or crocheted 
6    Men's or boys' woven breeches, shorts other than 
swimwear and trousers (including slacks), women's or 
girls' woven trousers and slacks, of wool, of cotton or 
of man-made fibers; lower parts of tracksuits with 
lining, other than category 16 or 29, of cotton or of 
man-made fibers 
7    Women's or girls' blouses, shirts and shirt- 
blouses, whether or not knitted or crocheted, of wool, 
of cotton or of man-made fibers 
8    Men's or boys' shirts, other than knitted or 
crocheted, of wool, of cotton or of man-made fibers 
9    Terry toweling and similar woven terry fabrics of 
cotton; toilet linen and kitchen linen other than 
knitted or crocheted, of terry toweling and woven terry 
fabrics, of cotton 
10   Gloves, mittens and mitts, knitted or crocheted 
12   Panty-hose and tights, stockings, understockings, 
socks, ankle-socks, sockettes and the like, knitted or 
crocheted, other than for babies, including stockings 
for varicose veins, other than products of category 70 
13   Men's or boys' underpants and briefs, women's or 
girls' knickers and briefs, knitted or crocheted, of 
wool, of cotton or of man-made fibers 
14   Men's or boys' woven overcoats, raincoats and 
other coats, cloaks and capes, of wool, of cotton or of 
man-made textile fibers (other than parkas) (of 
category 21) 
15   Women's or girls' woven overcoats, raincoats and 
other coats, cloaks and capes, jackets and blazers, of 
wool, of cotton or of man-made textile fibers (other 
than parkas) (of category 21) 
16   Men's or boys' suits and ensembles other than 
knitted or crocheted, of wool, of cotton or of man-made 
fibers, excluding ski suits; men's or boys' tracksuits 
with lining, with an outer shell of a single identical 
fabric, of cotton or of man-made fibers 
17   Men's or boys' jackets and blazers; other than 
knitted or crocheted, of wool, of cotton or of man-made 
fibers 
18   Men's or boys' singlets and other vests 
underpants, briefs, nightshirts, pajamas, bathrobes, 
dressing gowns and similar articles, other than knitted 
or crocheted, women's or girls' singlets and other 
vests, slips, petticoats, briefs, panties, night 
dresses, pajamas, negligees, bathrobes, dressing gowns 
and similar articles, other than knitted or crocheted 
20   Bed linen, other than knitted or crocheted 
21   Parkas; anoraks, windcheaters, waister jackets and 
the like, other than knitted or crocheted of wool, of 
cotton or of man-made fibers; upper parts of tracksuits 
with lining other than category 16 and 29, of cotton or 
of man-made fibers 
24   Men's or boys' night shirts, pajamas, bathrobes, 
dressing gowns and similar articles, knitted or 
crocheted, women's or girls' night dresses, pajamas, 
negligees, bathrobes, dressing gowns and similar 
articles, knitted or crocheted 
26   Women's or girls' dresses, of wool, of cotton or 
of man-made fibers 
27   Women's or girls' skirts, including divided skirts 
28   Trousers, bib and brace overalls, breeches and 
shorts (other than swimwear), knitted or crocheted, of 
wool, of cotton or of man-made fibers 
29   Women's or girls' suits, ensembles, other than 
knitted or crocheted, of wool, of cotton or of man-made 
fibers, excluding ski suits;  women's or girls' 
tracksuits with lining, with an outer shell of an 
identical fabric, of cotton or of man-made fibers 
31   Brassieres, woven, knitted or crocheted 
36   Woven fabrics of continuous artificial fibers, 
other than those for tires of category 114 
39   Table linen, toilet and kitchen linen, other than 
knitted or crocheted, other than of terry toweling or 
similar terry fabrics of cotton 
50   Woven fabrics of sheep or lambs' wool or of fine 
animal hair 
68   Babies' garments and clothing accessories, 
excluding babies' gloves, mittens and mitts of 
categories 10 and 87, and babies' stockings, socks and 
sockettes, other than knitted or crocheted, of category 
88 
72   Swimwear, of wool, of cotton or of man-made fibers 
73   Track suits of knitted or crocheted fabric, of 
wool, of cotton or of man-made fibers 
74   Women's or girls' knitted or crocheted suits and 
ensembles, of wool, of cotton or of man-made fibers, 
excluding ski suits 
75   Men's or boys' knitted or crocheted suits and 
ensembles, of wool, of cotton or of man-made fibers, 
excluding ski suits 
76   Men's or boys' industrial or occupational 
clothing, other than knitted or crocheted; Women's or 
girls' aprons, smock-overalls and other industrial or 
occupational clothing, other than knitted or crocheted 
78   Garments other than knitted or crocheted, 
excluding garments of categories 6, 7, 8, 14, 15, 16, 
17, 18, 21, 26, 27, 29, 68, 72, 76 and 77 
83   Overcoats, jackets, blazers and other garments, 
including ski suits, knitted or crocheted, excluding 
garments of categories 4, 5, 7, 13, 24,26, 27, 28, 68, 
69, 72, 73, 74, 75 
84   Shawls, scarves, mufflers, mantillas, veils and 
the like other than knitted or crocheted,   of wool, of 
cotton or of man-made fibers 
85   Ties, bow ties and cravats other than knitted or 
crocheted,   of wool, of cotton or of man-made fibers 
96   Non-woven fabrics and articles of such fabrics, 
whether or not impregnated, coated, covered or 
laminated 
100  Textile fabrics impregnated, coated, covered or 
laminated with preparations of cellulose derivatives or 
of other artificial plastic materials 
117  Woven fabrics of flax or of ramie 
156  Blouses and pullovers knitted or crocheted of silk 
or silk waste for women and girls 
157  Garments, knitted or crocheted, other than those 
of categories 1 to 123, 156 
159  Dresses, blouses and shirt-blouses, not knitted or 
crocheted, of silk or silk waste; Shawls, scarves, 
mufflers, mantillas, veils and like, not knitted or 
crocheted, of silk or silk waste; Ties, bow ties and 
cravats of silk or silk waste. 
End Informal Embassy Translation. 
Edelman