After seven rounds of talks, the US and China signed a
three-year agreement on the textile trade on Tuesday, imposing
increased quotas on Chinese textile products and clearing a major
obstacle to bilateral trade.
"The solution of the textile dispute is in line with the common
interests of companies in both China and US, which will benefit and
boost the stable development of the bilateral trade relationship,"
the Ministry of
Commerce said in an online statement after the signing.
A total of 21 types of clothing and textiles have been placed
under import restrictions, including cotton trousers. Previously 11
categories had been affected.
The agreement provides for progressive annual increases in
imports of major textile and apparel products from China -- by 10
to 15 percent in 2006, 12.5 to 16 percent in 2007, and 15 to 17
percent in 2008.
Zhao Yumin, an analyst from the ministry's trade and economic
cooperation institute, said that the agreement was the result of
compromises on both sides.
Zhao said that China made concessions mainly on the duration of
the import limit, allowing the imposition of restrictions to the
year 2008, instead of 2007, which was preferred by China.
"But on the issue of the increase rate and the base number of
the increase, the US has made more compromises," according to
Zhao.
As part of the agreement, the US committed to granting customs
clearance to all Chinese textile products currently blocked at
American ports and to refrain from limits on textile products not
covered by the agreement.
Calling the agreement "hard-won," Sun Huaibin, spokesperson for
China National
Textile and Apparel Council, said Chinese firms will have a
more predictable future for textile trade with the United
States.
"Though the firms still have to suffer from the quotas, it's
better than the previous restrictions imposed by the US
unilaterally," said Sun.
Calling the deal "not satisfactory" but "acceptable," Yuan
Jianzhong, manager of Shanghai Shanyuan Knitting Co. Ltd. in east
China, said his company will focus on increasing the quality of its
products in the future.
(Xinhua News Agency November 9, 2005)
