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US in Talks with Beijing over Textile Quotas

US in Talks with Beijing over Textile Quotas

Write: Penda [2011-05-20]

Thursday night, consultations commenced between China and the US to discuss ways of diffusing recent trade tensions over textiles.

The consultations have been seen as the first step in proceeding to resolve the ongoing problem which have seen a boom in Chinese exports to the US with the latter imposing measures to curb the increases.

In accordance with WTO regulations, talks will now give both sides an opportunity to attempt a deal within 90 days.

The discussions will concentrate on the seven categories or apparel and textiles that the US recently imposed safeguards upon.

The safeguards limit growth to 7.5% this year and are predicted to be reached this summer.

Once reached, no more products in these categories, including t-shirts, cotton trousers and underwear, can be imported from China for a year.

The effect of these safeguard measures would therefore force US importers to look elsewhere for the same products and could prove difficult in finding products of similar quality and price.

US importers will be disappointed by the latest restrictive measures on one hand but have benefited from the end of quotas on 1 January 2005 when other WTO member countries were forced to reduce their prices in order to compete with China.

China reacted angrily to US government action complaining that it acted too quickly in imposing quotas.