Progress seen in garment industry initiative

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Posted on Sep 06 2005
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Recent lobbying efforts by local officials in Washington, D.C. to preserve its garment manufacturing industry have shown positive signs of progress, according to CNMI executive officials.

Gov. Juan N. Babauta corresponded with Subcommittee on Trade for the House Ways and Mean Committee chair U.S. Rep. Clay Shaw and ranking member U.S. Rep. Ben Cardin formally requesting for assistance and support of the CNMI’s attempts to change the value-added requirement for General HeadNote 3(a) to regain Saipan factories’ lost competitiveness in the global apparel market.

After Lt. Gov. Diego T. Benavente’s recent trip to Washington, D.C., U.S. House Ways and Means Committee member Rep. Charles B. Rangel sent a letter to Benavente indicating his support of the project to lessen the adverse impact of increased Chinese apparel production on the Saipan industry and the CNMI’s economy.

“It is good that…you bring to my attention the adverse impact on jobs in the apparel industry that is apparently being caused by the escalating Chinese clothing exports to the U.S. since global quotas governing clothing exports were ended at the start of this year,” said Rangel. “You make a compelling case for my support and you will have it in my search for an appropriate legislative response to the disruption being caused to small and vulnerable economies by enhanced Chinese penetration of the U.S. market.”

The CNMI will submit comments to the U.S. Trade Representative’s Office for a public hearing on Sept. 14, 2005, listing impact on Saipan factories since quota restrictions were lifted on Jan. 1, 2005, and will also submit comments, as requested by the USTR, for China’s annual Transitional Review Mechanism reports to gauge impact upon the U.S. and its insular areas.

“Our efforts in all these attempts to provide information to federal decision makers will enhance our ability to prove we need a renegotiated trade formula for the survival of our garment industry here in the CNMI,” Babauta said. “We finally feel that there are ears in D.C. that understand our industry is vital to our revenue sourcing for essential services to our residents.” (PR)

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