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
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