As BOSS reported last week (BOSS_0535) the Department of Commerce in late June placed quotas on apparel imports from China. Those quotas, which were quickly filled when larger vendors and retailers aggressively moved to secure deliveries, have now turned into an embargo and many retailers may not have their full product assortments on the floor this winter.

Based on the most recent rounds of meetings between the U.S. Commerce department and Chinese officials, and delays caused by the focus on the situation in the U.S Gulf region caused by Hurricane Katrina, attempts to rectify the situation in time to free up quota for fall deliveries look to be seriously threatened. Meetings scheduled for this week in Washington have apparently now been delayed until late September.

This last week, the National Retail Federation stated that this agreement needs to allow for double-digit increases in imports and should not restrict items not made in the United States. NRF also joined the American Apparel and Footwear Association and the U.S. Association of Importers of Textiles and Apparel in writing to U.S. Trade Representative Rob Portman and Commerce Secretary Carlos Gutierrez to express concerns about the bilateral agreement.

Together the groups specifically asked for several key concessions, including, not restricting goods for which there has been no disruption to U.S. manufacturers of similar products and that no new safeguards limits should be imposed. The letter also stated that the recent quotas “have created immense uncertainty throughout the entire supply chain.”

The U.S. Trade Representative Special Textile Negotiators have been meeting with Chinese officials. The first round concluded in San Francisco two weeks ago, and several other discussions have taken place, the most recent round of discussions concluded in Beijing this week and there has still been no new agreement. David Spooner USTR Special Textile Negotiator, said, “…talks with the Chinese aimed at reaching a comprehensive agreement on textiles ended a short while ago. Despite our best efforts we were not able to reach a broader agreement. The United States remains optimistic that we can continue to make progress on the remaining issues.”