US, China clinch deal

LONDON – The United States and China reached a three-year agreement on Tuesday to rein in billions of dollars of China’s clothing and textile shipments to the United States, solving an issue that had strained trade ties.

The pact, coming two weeks before President George W. Bush visits Beijing, limits Chinese shipments to the United States in more than 30 clothing and textile categories – including trousers, shirts, underwear and bras – through 2008.”I believe the textile agreement shows our ability to resolve tough trade disputes in a manner that benefits both countries,” US Trade Representative Rob Portman said at a London press briefing with Chinese Commerce Minister Bo Xilai.Bo described the deal as a “win-win result” for both countries, but warned rich countries need to come to grips with China’s emergence as a major textile and clothing exporter following the end of a global quota system on January 1.”Developed countries should be aware that textile integration is an inevitable trend and to have quotas is not correct,” said Bo, who announced the deal as Chinese President Hu Jintao headed for London on an official visit.US textile groups hailed the agreement, which they said was better than one the EU negotiated with China earlier this year because it has lower growth rates for the most sensitive clothing imports and lasts one year longer.”The US industry will know with certainty that China will not be able to flood the US market during the next three years,” Jim Chestnut, chairman of the National Council of Textile Organisations, said in a statement.US retailers and importers said they were relieved the deal would bring more certainty to the marketplace, but disappointed with low growth rates for imports.”What we needed to see were significant and escalating double-digit growth rates.What we got were minimal increases that will not keep up with the demands of the US market,” said Laura Jones, executive director of the US Association of Importers of Textiles and Apparel.China’s exports of clothing and textile products to the United States jumped 55 per cent in the first eight months of 2005 to nearly US$17,7 billion following the end of the global quota system.That prompted US textile producers to successfully lobby for restrictions on billions of dollars of China’s clothing and textile exports under a “safeguard” provision of Beijing’s 2001 entry into the World Trade Organisation.But because those curbs have to be renewed annually, textile groups also pushed the Bush administration to negotiate an agreement with China that would limit imports until the end of 2008, when the safeguard provision expires.As part of the new pact, the US agreed to exercise “restraint” in using the safeguards on products not covered by the agreement.Quotas levels also rise gradually to prepare US producers for 2009, when there will no longer be any restrictions on Chinese imports.-Nampa-ReutersBush visits Beijing, limits Chinese shipments to the United States in more than 30 clothing and textile categories – including trousers, shirts, underwear and bras – through 2008.”I believe the textile agreement shows our ability to resolve tough trade disputes in a manner that benefits both countries,” US Trade Representative Rob Portman said at a London press briefing with Chinese Commerce Minister Bo Xilai.Bo described the deal as a “win-win result” for both countries, but warned rich countries need to come to grips with China’s emergence as a major textile and clothing exporter following the end of a global quota system on January 1.”Developed countries should be aware that textile integration is an inevitable trend and to have quotas is not correct,” said Bo, who announced the deal as Chinese President Hu Jintao headed for London on an official visit.US textile groups hailed the agreement, which they said was better than one the EU negotiated with China earlier this year because it has lower growth rates for the most sensitive clothing imports and lasts one year longer.”The US industry will know with certainty that China will not be able to flood the US market during the next three years,” Jim Chestnut, chairman of the National Council of Textile Organisations, said in a statement.US retailers and importers said they were relieved the deal would bring more certainty to the marketplace, but disappointed with low growth rates for imports.”What we needed to see were significant and escalating double-digit growth rates.What we got were minimal increases that will not keep up with the demands of the US market,” said Laura Jones, executive director of the US Association of Importers of Textiles and Apparel.China’s exports of clothing and textile products to the United States jumped 55 per cent in the first eight months of 2005 to nearly US$17,7 billion following the end of the global quota system.That prompted US textile producers to successfully lobby for restrictions on billions of dollars of China’s clothing and textile exports under a “safeguard” provision of Beijing’s 2001 entry into the World Trade Organisation.But because those curbs have to be renewed annually, textile groups also pushed the Bush administration to negotiate an agreement with China that would limit imports until the end of 2008, when the safeguard provision expires.As part of the new pact, the US agreed to exercise “restraint” in using the safeguards on products not covered by the agreement.Quotas levels also rise gradually to prepare US producers for 2009, when there will no longer be any restrictions on Chinese imports.-Nampa-Reuters