-- U.S. textile imports in 2006:

According to statistics released by Office of Textiles and Apparel (OTEXA) of U.S. Department of Commerce, U.S. textile import continued its steady growth in 2006.

1. Small increase for textile imports

In 2006, U.S. textile import volume totaled 52.1 billion square meters, a 2.6% increase over the previous year. Average textile product price went up by 1.95% over the year 2005.

2. Raw material imports declined while finished product imports continued to go up

In 2006, U.S. imported 22.5 billion square meters of apparel, which totaled 71.6 billion USD, up by 2.4% and 4.2% respectively over the previous year. Textile import volume reached 29.6 billion square meters and 21.6 billion USD, a 2.7% and 5.6% increase respectively over 2005.

3. Textile imports from South Asia and Southeast Asia fast up

In 2006, the quota of U.S. textile import market changed tremendously. Textile imports from CBI (Caribbean Basin Initiative) countries, CAFTA (Central America Free Trade Agreement), Mexico, Canada and Turkey declined by 8.9%, 10.5%, 11.8%, 19% and 14% respectively. Textile imports from South East Asian and South Asian countries maintained a steady increase from the year 2005. In 2006, U.S. textile imports from Pakistan, India, Indonesia, Bangladesh, Vietnam, Cambodia and Philippines went up by 8.4%, 13.7%, 18.1%, 13.8% and 20.8% respectively.

In 2006, the top ten textile import sources of the U.S. (in terms of import value) were China, Mexico, India, Indonesia, Pakistan, Bangladesh, Hong Kong China, Canada and Honduras. Textile imports from the top ten sources totaled 64% of the U.S. textile import volume.

4. trade deficit continued to grow

In 2006, U.S. textile trade deficit amounted to 83 billion USD, a 4.8% increase over the previous year, which took up 9.9% of the U.S. commodity trade deficit during the same period. Textile trade deficit from Mainland China reached 29.6 billion USD, up by 16.7% over the year 2005, and accounted for 35.7% of the U.S. total textile trade.

--U.S. textile imports from China in 2006

In November, 2005, China and U.S. signed the Bilateral Textiles Agreement, which was put into effect in the year 2006.

1. Imports continued steady growth and import unit price went up sharply

In 2006, U.S. imported 18.6 billion square meters of textile products from China, up by 11% over the previous year. Textile import volume reached 27.1 billion USD, rose by 20.8% over the year 2005. Import unit price was increased by 8.8%.
　　
2. Apparel and textile imports maintained a fast growth

In 2006, U.S. imported 6.5 billion square meters of apparel from China, totaling 18.5 billion USD, a 10.6% and 22.3% increase over the previous year respectively. Over the same period, the U.S. also imported 12.1 billion square meters of textile products from China, which amounted to 8.5 billion USD, and realized an 11.3% and 17.7% increase respectively over the year 2005.

3. Imports of restricted items dropped sharply in quantity while import price saw an increase.

All 21 textile items that have been restricted by the U.S. realized a double-digit increase in import price, and the U.S. imported more textile products from developing countries in the South and South East Asia regions. As an example, in 2006, U.S. imports of categories 338/339 from Indonesia, Cambodia, India, Bangladesh, Vietnam and Pakistan went up by 124%, 86%, 41%, 60%, 29% and 21% respectively, while categories 347/348 imports from Bangladesh, Indonesia, Vietnam, Cambodia, Pakistan and India rose by 72%, 60%, 36%, 26%, 35% and 27% respectively.

--Analysis and outlook of Sino-U.S. textile trade in 2007
　　
1.U.S. textile imports expected to go up further

Most economists hold positive views on the U.S. economic situation in 2007. Economists believe that the U.S will retain a 2.5% increase in its economy, which will result in a continued growth in U.S. demands for textile products.

2. China’s textile exports to U.S. will maintain steady growth.

After the mid-term congressional elections, the U.S. Congress strengthened its trade protectionism against China, which resulted in increasing uncertainties in the future Sino-U.S. trade environment. Unrestricted textile products will remain as China’s main momentum in its textile exports to the U.S., but will likely grow at a slower pace in 2007.
　　
3. Key factors that will affect Sino-U.S. textile trade in 2007

Firstly, China’s RMB appreciation will have some influence on China’s textile export price. Secondly, in 2006, imports of certain restricted products from some countries went up at a very fast rate, which failed to abide by the laws and regulations of trade and transit, therefore, U.S. tightened its punishment force against illegal transit. Over the past year, U.S. has signed Customs Cooperation Agreement with Hong Kong, Macaw, Philippines and Indonesia. The inspections and supervisions are expected to be further enforced and strengthened in 2007.