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China, US sign textile trade agreement
(Xinhua)
Updated: 2005-11-09 09:05

After seven rounds of talks, the United States and China on Tuesday signed a three-year agreement on textile trade, imposing quotas on Chinese textile products but clearing a major obstacle to bilateral trade.


Minister of Commerce Bo Xilai and US Trade Representative Rob Portman sign an agreement on textiles in London yesterday. [AFP]
 

After the signing of the agreement, China's Ministry of Commerce said on its website that the agreement is in line with the common interests of companies in both countries.

"The solution of the textile dispute is in line with the common interests of companies in both China and United States, which will benefit and boost the stable development of the bilateral trade relationship," the Ministry of Commerce said in an online statement.

A total of 21 types of clothing and textiles had been placed under the import restrictions, including cotton trousers.

The agreement provides for a progressive increase 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.

Imports from the previous year would be used as the base number to calculate the growth rate, the ministry said.

Zhao Yumin, an analyst from the ministry's trade and economic cooperation institute, said that the Tuesday agreement was the result of compromises on both sides.

Zhao said that China made the compromise mainly on the durationof the import limit, allowing the US to impose restrictions till year 2008, instead of 2007, which is preferred by China.

"But on the issue of the increase rate and the base number of the increase, the U.S. has made more compromises," said Zhao.

As part of the agreement, the United States committed to granting customs clearance to all Chinese textile products currently blocked at the American ports. In the meantime, the US also agreed to refrain from limits on textile products not covered by the agreement.

Calling the agreement a "hard-won one," Sun Huaibin, spokesman for China National Textile and Apparel Council, said the Chinese firms will have a more predictable future for textile trade with the United States, which is a good result.

"Though the firms still have to suffer from the quotas, it's better than the previous restrictions imposed by the U.S. unilaterally," said Sun.

Calling the deal "not satisfactory" but "acceptable" to his company, Yuan Jianzhong, manager of Shanghai Shanyuan Knitting Co.Ltd. in east China, said that his company will focus on increasing the added value of products in the future.



 
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