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US probes Chinese textile exports
7/4/2005 10:11

The US government launched an investigation yesterday to determine if Chinese textile exports are a threat to its market before deciding whether to re-impose quotas on some textile products.
The investigation will be carried out in three textile and apparel categories - cotton trousers, cotton knit shirts and blouses, and underwear made of cotton and man-made fibers.
The probe was initiated by the Committee for the Implementation of Textile Agreements of the United States, which began to solicit public opinions on this issue yesterday.
The CITA will then decide whether to take steps to curb the imports in the three categories within 60 days following the 30-day opinion solicitation.
The US government's probe was in response to the surge in Chinese textile and apparel exports to the country in the first three months.
The statistics compiled by the US Department of Commerce showed cotton trousers shipments during the period soared more than 15 times on an annual basis, with cotton knit shirts and blouses rising 12.5 times and underwear made of cotton and man-made fibers 300 percent.
The expiration of textile quotas boosted shipments, noted Cao Xinyu, vice chairman of the China Chamber of Commerce for Import & Export. The WTO removed the tariff on January 1.
Furthermore, many American importers delayed the shipments to this year from end of last year. So the first quarter was quite an unusual period, he added.
Meanwhile, The European Union's head office agreed on guidelines yesterday on how far Chinese textile imports can increase before the EU considers emergency barriers to protect its domestic industry.
"There are serious concerns about the impact of a surge of Chinese imports on EU textile industries," EU Trade Commissioner Peter Mandelson said.
Under the guidelines, he said, increases of between 10 percent and 100 percent on 2004 levels would trigger an EU investigation and informal talks with the Chinese on possible measures.
Adopting the guidelines does not automatically mean the EU would adopt barriers to Chinese imports, Mandelson said.



 Shanghai Daily/AP