April 25, 2005

Dear USA Domestic Manufacturing Committee Members and Supporters:

     Much has happened in the field of global trade and trade bills during the past year. The “good” news is that we as a domestic industry are still in business. And who is to say that would be true without the efforts of you and people like you working through the DMC to fight this battle in Washington. The “bad” news is that the challenge is still on to face the global “free trade” competition. But, in watching the news and reading the papers, you probably are hearing a lot more discontent to those free trade policies than used to be reported. People are beginning to “connect the dots” so to speak between unemployment, business closings, trade deficits, and the “free trade laws” passed in Washington. 

     The DMC has worked hard to make inroads at the Washington level to help domestic socks producers continue to make socks in the USA. We are working hard today as well. The DR/ Central American Free Trade Act (CAFTA) is not a good bill for USA producers so we are showing our opposition with other groups against this bill. We are opposing the Free Trade of Americas Act that is scheduled to follow. However, the significance of CAFTA is that if it is defeated or doesn’t come up for vote then most likely few of the other trade bills on the agenda will be voted on either.

   We have achieved quotas on Vietnam to discourage them from getting into the sock business. DMC has gotten passed the legislation that will allow consumers to see where the socks were produced in sizable lettering on the front of the package or band. And very importantly, DMC was successful in getting quotas placed on socks coming from China. This quota count on China started with shipments

made on October 29, 2004 and will go through October 28, 2005. However, in a recent message from the Customs service, I was informed that already over 71% of the quota had been filled. And at the rate of increase showing this year from China, it could be totally filled by end of May 2005, possibly leaving China with six (6) months leading up to October with no quota to ship socks to the USA.  Because of the significance of this event we will definitely be submitting another petition to extend the quota for another 12 months once the time has expired on this one. This must be significant for USA sock producers.

     Jim Schollaert and the others at AMTAC have worked hard with us to accomplish things that most thought would never come about. But it is amazing what can be accomplished by us working together as a domestic industry to let our voices be heard in Washington.

     Many avenues are left to tread in our campaign to keep sock manufacturing viable in the USA. From the DMC survey conducted in mid February, the following were the most critical items of interest on your minds. 1. CAFTA 2. Quota on China 3. Berry Amendment 4. Vietnam Free Trade Act and 5. Free Trade of Americas. DMC is and will continue to address all of these items as well as others. If you have concerns that have not been mentioned here, please advise Darrell Frye or me immediately. Your input is extremely important for DMC’s efforts to stay focused in the most beneficial direction.

     Please see your way to continue your support or start as the case may be by joining, rejoining, or simply submitting a check of support so we can again have the help in Washington, like Jim Schollaert and AMTAC to lead us in our efforts to save our USA domestic sock manufacturing and related jobs. All checks are made out to THA and marked for “DMC Membership or DMC Contribution”.

     Attached is your membership and/or contribution sign up sheet. Please fill this out today and mail to THA so we can make plans for our efforts for the coming year.

Charles Cole, Chairman
USA DMC of The Hosiery Association

Darrell Frye, Vice Chairman
USA DMC of The Hosiery Association
 

....Charles