Textile Monitoring Program (TMP) - By USA to Control the Flooding Exports of China

The quota agreement negotiated by Washington and Beijing in 2005 expires at the end of December, reminding U.S. about the increased competition from cheap Chinese textiles. During 2005, US and China signed a deal to resolve issues over the import of Chinese clothing and textile products. In 2005, China’s exports of textile to US increased more than 50% and reached US $17.7 billion following the end of a global quota system. The sudden increase in textile, and apparel imports from China after 2001 led US to invoke a provision included in China’s WTO accession agreement. According to the agreement, if textiles and apparels imported from China causes a market disruption in US, the country may impose import quotas regulating the inflow of goods. The terms of agreement allow US to act unilaterally for one year, and later on should consult with China to continue the quota restrictions. This special safeguard provision for Chinese clothing and textile imports expires on December 31, 2008.
China – The Post Quota Beneficiary:
The termination of over 40 years of quotas on January 1, 2005, guided a new period for the global trade in clothing and textiles. After 10 years of transition under the World Trade Organization’s (WTO) Agreement on Textiles and Clothing (ATC), trade activities among the members of WTO were not subject to any quantity restrictions. The notion that the expiry of quotas might affect the textile and apparel trade in U.S. was subject to broad research. While some researches forecasted a shift in clothing and textile production to quota-constrained nations, there was also a disagreement on the size and pace of the production shift. Further, there was no idea of the nations that might suffer with a decline in their textile, and apparel exports at the expiry of ATC. Despite the contradictory opinions regarding the post effects of the expiry of ATC, the biggest beneficiary still remains to be China. Abundant availability of cheap and skilled labor, adequate infrastructure, and industrial capabilities would make China to have an optimum utilization of opportunities during the post quota period.
Export Constraints for China:
Despite the rosy hopes of China topping in textile and clothing exports to US, the country still faces some obstacles:
US and other WTO members have retained the option to impose restrictions on Chinese imports, provided the imports may hamper the trade activities of the domestic markets.
Various trade restrictions govern the international trade of textiles and clothing. If US can prove that the textile imports from China are sold in an illegal way, or below the cost, it can impose antidumping duties against China.

China’s textile exports to US initially started during 2001, and accelerated during 2005. During the period, 2001-2004, textile exports of China were at a slow pace. In 2005, US imported textiles for 23 billion USD and clothing for $80 million USD, the highest as compared with any other WTO member countries. During 2006, China’s exports to US increased to 29.1% making a total of $100 million USD. China was ostensibly rising as a biggest supplier of clothing and textiles. The accession of China into WTO, and the expiry of ATC removed the trade barriers that were previously stopping them from exporting abundant clothes into US. China’s textile exports to US were 9.85% in 1997, and steadily increased to 27% in 2004, 83% in 2005, and 21% in 2006.
Due to the post quota benefits China is likely to enjoy, some US manufacturers may lose competitiveness and involve in retrenchments and layoffs. Though the recent decrease in the number of jobs is contemporaneous to the expiry of the ATC the timing and pace of the decline raises some doubts about the significance of apparent correlation. Domestic clothing production did not decrease, but actually increased after the quota elimination. Also, the year-on-year reduction in textile production occurred in 2001 which was not a year in which quotas were lifted. Added to this, while the value of U.S. clothing production continued its sharp decline since 2001, textile production nearly leveled off.
US Seeks TMP (Textile Monitoring Program):
U.S. Government has imposed safeguards on numerous categories of U.S. textile and apparel imports from China, which in turn, encouraged the United States and China to negotiate the bilateral that expires at year’s end. A few law-makers do believe that China is violating the US trade Laws. The National Council of Textile Organizations and other industry groups are concerned about the fact that China will make optimum utilization of this opportunity to dump huge quantities of high priced, heavily subsidized products into the US market.
Textile manufacturers of US seek monitoring of textile imports from China. Trade groups from 17 countries, supported by 73 members of Congress, urged the Bush administration to monitor textile and clothing imports from China for unfair pricing once quotas are removed at the end of the year. With the support of the National Cotton Council, textile associations, a labor union, and 73 U.S. Representatives led by Textile Caucus Co-Chairs Howard Coble and John Spratt sent a letter on September 26th to President Bush requesting him to extend the Textile Monitoring Program (TMP) to cover U.S. textile and apparel imports from China beginning on January 1, 2009, the very first day following the expiry of U.S.-China textile bilateral agreement signed in 2005. Under the Textile Monitoring Program, the Department of Commerce analyzes data from sensitive textile and apparel categories for possible dumping. If needed, it can even take required actions for anti-dumping duties.
Extending the monitoring program with China, after the expiry of the current regulations will empower the US Government to react quickly, if China attempts to dump its imports into the US markets thereby affecting the domestic trade activities.

Lingerie and lingerie's only - A global report

Women are unique in every way, and this uniqueness is also represented in the intimate apparels they wear. The delicate secrecy of feeling that one is secretly wearing something pretty underneath gives every woman a confidence, boosts her self-esteem, and makes her feel prettier and far more desirable. Customers do not need as many garments as they buy, and this is more visible in women's lingerie. They buy intimate wears just because, it looks beautiful, and fits under certain apparels. Western wears along with lingerie will rise as one of the fastest growing segment in US, and organized players are expected to constitute 40% of the intimate apparels market by 2009.

Ultimate Accessories-Industry Observation of American Lingerie's

During the past 25 years, lingerie underwent a metamorphosis and has blossomed into a huge money making segment of apparels. Since the removal of quotas in 2005, the lingerie industry in US is undergoing a rapid transformation. US apparel market is estimated to be around $9.6billion during 2007. Women's apparel market in US is expected to grow at the rate of 1.9% every year during 2004-2009. Retailers are now recognizing that lingerie market gives higher profits, and are launching new lingerie products or giving a new make over to their existing products. Lingerie vendors now, give more preference on making partnership with specialty stores than with department stores because the latter cannot store all the products of one brand.

On average, American women spend $100 on the purchase of intimate apparels; annually. Almost 65% of the global lingerie is sold to Western Europe and North America. Success of undergarments can be judged by the growth of domestic lingerie market. A New York based market research firm concludes that US retailers sell over $10.5 billion USD worth of lingerie's annually. Apart from its domestic consumption and exports, the country also imports intimate wears. Majority of the intimate apparel imports into US is from China. Due to this, the domestic retailers face a decrease in their profit margins due to the competition of cheap textile imports from China.

Discreet Brands In the US market

Lingerie giant and retailing pioneer Victoria's Secret has created a lucrative market for lingerie business. They were the pioneers in creating a 'kaleidoscope of looks' for intimate apparels that would be sexy enough to tempt the shoppers. Kohl's, Target, J.C.Penny, Nordstrom, Bloomingdale's Lane Bryant, and American Eagle Outfitters are some of the retailers who have followed Victoria's Secret and have added new products to their existing lines or come up with new intimate wears. Janes World boutiques are the leading edge in the lingerie business both in price and quality. Competition in the lingerie market in US has heightened as compared with the period two decades before when Victoria's Secret had a well established market all for itself.

The biggest portion of intimate apparel sales comes from departmental stores like Sears, Wal-Mart, The Bay, and Macy's. Big businesses like Liz Claiborne, VF Corporation, and Jones Apparel have grown adopting strategies like brand building, acquisitions, and efficient supply chain management. With the advent of internet, a woman can brose through the largest, and diversified collection of lingerie. Newport News, and Spiegel, Barenecessities.com, and Figleaves.com are now a making profitable business; online. Los Angeles based internet catalog business, Frederick's of Hollywood has a good market; online. These marketers make it comfortable for women of today to shop online with their credit cards.

Women--Plus Size Lingerie Market

'Plus size' does not mean being unattractive. Despite the size, every woman's desire is to dress smart, and look beautiful. A recent market research survey states that women in the age group, 25-36 are the most prolific buyers of plus size lingerie. About 61% of the American women are of overweight. The survey also estimates that by 2015, 75% of the adults including both men and women will be using plus size lingerie. Targeting plus size customers have become more recognized coinciding with the backlash of the ultra thin models.

Fashion industry statements affirms that plus size start at size 14 in the US, and half of the American women wear clothing in size 14 or larger. Despite the struggling economy, plus size lingerie market continues to grow with high quality lingerie brands. EU and US have invested heavily in the plus size market. Bali, Barley There, Natori, Vanity Fair, Chantelle, Playtex and Wacoal are some of the trendy brands that offer fashionable plus size lingerie's.

More than "Just Lingerie"--Fashion Fiesta Of the US Market

Just like other areas of the fashion segment, there is always something fascinating on the horizon for intimate apparels. The trend for the current year is moving towards colors and types which has a hint of romance in it. Being discreet is the intention of every woman. Boxer shorts, and bras with football prints and colors of classic pink, red and trendy lilac, intimate wears with polka dots, and lingerie with net, are the new styles seen in the store racks. One of the hottest underwear trends for women is the boxer, knit or woven man-style undershots. The demand now is for multifunctional bras with many options like multi-use and removable straps to match with the user's mood and preferences.

In US, the trend for strings is fading out, and panties and briefs covering the hips with wide cuts are in fad. Seductive lingerie's in hues of blue, pink cream blue, rose tones, white, and mint green occupy the color palette. Skin tones are also more prevalent. Geometric patterns in pastel shades, and squiggles are featuring in intimate apparel designs. Shine and metallic accents give an appealing look to the geometrics. Briefs possess a resemblance of the 40's with the slit up side seams, glued edges and laser etchings.


Wearing camisoles and corsets in public is now considered as 'clubwear lingerie' and is making its way ahead. One more way of displaying lingerie in public is the use of bows and tassels on the apparels worn effectively with low rider jeans. These types of intimate wears are available for a higher price in the market and are currently sought by most of the American women. Apart from the normal straps, fur, and sequence seen in lingerie's now a days, there is a need for creativity in its designing. Baby dolls, camisoles and boy shorts are in vogue with pastel shades taking the lead in colors. The current trends are sure to spark excitement in the minds of women.

Intimate apparels are growing fast, but it takes the right approach to stay in the swim. Customers of this era are not impressed by merely a 'sexy' appearance of the intimate wears. What satisfies them is 'sexy lingerie with a touch of class. This is a product that any woman enjoys purchasing, regardless of her age and vital stats. Intimate wears does not discriminate, and gives a 'feel-good' purchase feeling to every woman.