China-US agree on textile import curbs until 2008

China-US agree on textile import curbs until 2008

WASHINGTON - The ink is yet to dry on the new textiles agreement between China and the United States, but the US textiles industry has demanded that the WTO impose new curbs on China to prevent it from unfair encroachment on the world textile market.

US Trade Representative Rob Portman and Chinese Commerce Minister Bo Xilai signed the agreement in London ahead of a state visit by the US President George W Bush. The deal limits Chinese exports to about 34 textile products until 2008. "This provides for a three-year, predictable and certain environment, which will result in more, not less employment in the United States," said Mr. Portman.

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"I also believe it is a win-win, in the sense that it is also good for the Chinese employment picture, because they can also ... plan better." Bo Xilai said that the agreement would provide a stable environment in China as well. The agreement was reached after five months of intense talks between the two sides following a stand off between the two countries over the vexed issue.

The National Retail Federation welcomed the agreement and said that it was better than restricting imports, "We are opposed to restrictions on imports, but this agreement appears to offer an improvement over the current system of safeguard quotas being imposed for political reasons without regard to the adverse impact on U.S. retailers and consumers," said Erik Autor, its vice president.

Among the items that are covered under the agreement, cotton knit shirts; trousers and underwear are also included. As a part of the deal, Chinese products struck at US ports would be allowed into the country. Auggie Tantillo, executive director of the American Manufacturing Trade Action Coalition also welcomed the agreement, "This bilateral agreement represents a necessary and welcome step towards addressing China's unfair trade practices and highly disruptive levels of textile trade," he said.