Posted on 09/01/2005 9:33:37 PM PDT by TigerLikesRooster
Some China Textile Import Quotas Re-Imposed
By MARTIN CRUTSINGER, AP Economics Writer
Thu Sep 1, 9:18 AM ET
The Bush administration announced Thursday that it was re-imposing quotas on two categories of Chinese clothing and textile imports after negotiators in Beijing failed to make progress toward an agreement to limit a surge of imports from China.
The administration said that it would limit imports of fabric made with synthetic filament threads and also bras and other body-supporting undergarments, in response to shipments that have battered the U.S. industry.
"Today's announcement demonstrates this administration's commitment to leveling the playing field for U.S. industries by enforcing our trade agreements," said Commerce Deputy Assistant Secretary Jim Leonard.
The administration announced it was extending until Oct. 1 a deadline for making decisions in four other cases covering sweaters, dressing gowns, knit fabric and wool trousers. That delay was seen as an effort to keep up pressure on the Chinese to agree to comprehensive limits on clothing and textiles or risk seeing even more categories covered by limits that cap growth in imports in the categories covered to 7.5 percent annually.
U.S. textile and clothing makers contend that a flood of Chinese imports since Jan. 1, when global quotas were lifted, has forced 19 textile plants to close and cost the United States 26,000 jobs just this year.
The administration has already re-imposed quotas in several major categories and U.S. manufacturers have vowed to keep filing requests in new categories unless a comprehensive agreement is reached with the Chinese.
American retailers have complained that the imposition of quotas will drive up the price of clothing for U.S. consumers. Limits have already been hit in several clothing categories, leaving retailers to scramble to look for other suppliers.
Many trade experts contend that the new limits will save few American jobs as retailers are expected to simply move their purchase orders to other low-wage countries in Asia or Latin America.
The new quotas were announced after U.S. and Chinese negotiators meeting for three days in Beijing were unsuccessful in an attempt to wrap up a comprehensive agreement limiting imports in all categories of clothing and textiles that have been disrupted by the surge in Chinese shipments.
Leonard, in announcing the new quotas, said, "We will continue to consult with the Chinese government to find a solution that will permit the orderly development of textile and apparel trade."
In Beijing, David Spooner, who led the U.S. negotiating team, said, "Despite our best efforts we were not able to reach a broader agreement." He said the U.S. side would be consulting with the Chinese over the next few days to set a date and location for the next round of talks.
The dispute over textiles has added to trade tensions between the two countries, reflecting unhappiness in the United States with a trade deficit with China that hit $162 billion last year, the largest imbalance ever recorded with a single country. So far this year, the deficit with China is running 32 percent above last year's level, reflecting in part the surge in clothing and textile shipments.
The Chinese government hasn't commented on the talks this week, but state media have suggested that Beijing's position might be strengthened by an uproar in Europe over a backlog of Chinese textiles at European ports under a quota system negotiated in June.
"This trade fiasco demonstrates that protective measures, at best, are zero-sum games for those who resort to them," the official China Daily newspaper said Wednesday.
In Brussels, European Union Trade Commissioner Peter Mandelson unveiled a plan Thursday to unblock some 75 million garments held up at EU borders after Chinese textile imports hit the 2005 quota limits.
The EU executive office will need a majority vote from the trade bloc's 25 nations to change the import limits.
I think it is going to be too little, too late. These last few months have taken a toll that may be the tipping point.
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