China applauds textile agreement, but hits out at US
china...@yahoo.com
United States on Tuesday, but at the same time criticised "restrictive"
US actions that regularly destabilise the balance of trade.
"The solution of the textile dispute is in accordance 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 a statement on its
website.
However, the statement added that since the end of global textile
quotas on January 1, the United States had regularly taken restrictive
measures against Chinese textiles and clothes.
"(The United States) frequently takes restrictive measures against
Chinese textiles products, greatly destabilising both countries'
textile trade and affecting the normal orderly development of trade,"
the statement said.
The agreement provides for a progressive increase in imports of most
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, the
ministry said.
It said that 21 types of clothing and textiles had been placed under
the import restrictions, including cotton trousers.
Imports from China into the US from the previous year would be used
base to calculate the growth rate of exports, the ministry said.
As part of the agreement the US committed to allowing into the country
all textile products blocked at customs ports.
Washington also agreed to refrain from adopting new limits on textile
products not covered under the agreement, it said.
A spokesman for the China National Textile and Apparel Council called
the deal "good news" but refused to provide further comment.
The deal should assure China of a gradual and healthy increase in
textile exports to the US, said Wen Jibin a textile analyst at Sanyi
Securities.
Wen said the average 10 to 17 percent annual increase in US imports of
China-made clothing and fabric agreed upon was the industry's "bottom
line" and it could not have accepted deeper cuts to its trade with
American retailers.
"This is the most we can gain for our textile industry because a cloud
is hanging over our heads, and this deal will avoid a sharp disruption
in production," Wen said.
US and Chinese officials announced the agreement in London ahead of an
official visit by Chinese President Hu Jintao to Britain, Spain and
Germany. - AFP /dt