Blog: Leonie BarrieChina textile deal in sight?

Leonie Barrie | 7 November 2005

It’s been a long drawn-out process, but at last it seems the US and Chinese governments are edging closer to an agreement to stem soaring textile imports into the USA. Although full details of the deal aren’t expected until tomorrow, according to the National Association of Textile Organisations it seems the basic structure of the three year bilateral textile pact with China is as follows.

1: Over the life of the agreement, Chinese growth rates will see only a minimal increase in market access – 3.8 per cent (in square metres) – over and above those imposed by safeguard clauses in the 14 largest and most sensitive textile and apparel categories. These categories include cotton and manmade fibre trousers, cotton and manmade fibre knit shirts, underwear and bras where Chinese export growth will be limited to 5.5 per cent in 2006, 7.8 per cent in 2007 and 10.3 per cent in 2008.

2: In addition, imports from China in 20 other priority textile and apparel categories will now be placed under quota control over the next three years. Here, growth would average 10-12 per cent in 2006, 12-15 per cent in 2007, and 16 per cent in 2008 

3: The US textile industry will retain full rights to use the safeguard in categories not covered by the agreement.

Protectionist US trade groups say such an outcome would meet the broad parameters that the industry set out when negotiations with China began. There have, in fact, been concessions from both sides if this is the agreement that is finally signed off. China originally sought a deal that would last until the end of 2007; whereas the US wanted to limit the growth of Chinese textile exports to 7.5% for the duration of the deal.

It will also come as a relief to many retailers and other importers for whom an agreement – any agreement – will provide some predictability and stability for buyers.

Let's just hope there are no nasty surprises.


BLOG

Trump spares textile machinery in tariff spat

Hundreds of US imports from China will be hit with an additional 25% tariff from next month – but to the relief of the US textile, apparel and footwear industry, most of the equipment used in the dome...

BLOG

Esquel's eco-friendly manufacturing complex

Hong Kong-based Esquel Group, the world's largest woven shirt maker, has been bedding-in operations at a ground-breaking new $313.3m eco-friendly manufacturing complex in southern China....

BLOG

Tariffs back at top of Trump's trade agenda

Tariffs soared back to the top of Trump's trade agenda last week, with the imposition of punitive tariffs on imports of steel and aluminium, and plans to proceed with an additional 25% tariff on impor...

BLOG

Digitalisation goalposts constantly evolving

The debate and discussion around digitalisation continues to top the apparel industry’s agenda – but as Spencer Fung, group CEO of Li & Fung explains, the goalposts are constantly evolving....

just-style homepage



Forgot your password?