October 27, 2004

Congressman Tom Petri reports that the Commerce Department is looking into Chinese violations of trade agreements which affect a sock manufacturer in Sheboygan and a woolen yarn supplier in Two Rivers. "I wrote to the Department's Committee for the Implementation of Textile Agreements urging this action, and I'm glad they're moving forward," he said.

Petri explained that on October 22 the Commerce Department's committee determined that the U.S. market for socks is being disrupted, and that there is a threat of further disruption due to imports from China. "The Department is responding by placing a quota on Chinese socks and entering into discussions with the Chinese government to reach a mutually satisfactory agreement about the sale of socks in the United States. There will still be a lot of Chinese socks competing against American brands, but there will be a limit in order to give our companies some breathing room," Petri said.

Petri said that the quota is in keeping with a trade agreement with China negotiated to prevent a surge of imports when that country became a member of the World Trade Organization, which helps to minimize trade disputes.

"I'm pro-competition and American companies mustn't rely on government protection of inefficient operations, but sometimes we can provide limited relief so that companies can re-tool the way Harley-Davidson did 20 years ago. And we can protect our jobs against the dumping of state-subsidized, underpriced goods," he said. "That's what I'm trying to do for the employees of Wigwam Mills in Sheboygan, and Crescent Woolen Mills of Two Rivers."