Beijing scraps export tariffs on 81 categories of textiles
Beijing (AsiaNews/Agencies) The ministry of Finance said on Monday in a statement on its website that the mainland will abolish on June 1 export tariffs on 81 categories of textile products.
"On June 1, 2005, export tariffs on 81 categories of textiles will be cancelled" it said.
The "freed" products include flax yarn and T-shirts. The European Union on Friday 27 formally requested talks with Beijing. Talks should start today.
To appease concerns by the EU and the United States about booming Chinese textile exports, the mainland on May 20 said it would raise export tariffs on 74 categories of textile products. But these have now also been abandoned, the ministry added.
"If countries take actions to limit textile products exports from China, we will exclude those products from the export tariffs" Commerce Ministry spokesman Chong Quan said on May 21.
The US and EU contend that the flood of Chinese textiles swamping their markets since the global quota system ended on January 1 threatens millions of jobs in their countries. In some cases there have been a 500 percent raise of the exportations
Under the terms of China's accession to World Trade Organisation (WTO) on 2001, lodging the request requires China to limit its exports of those products to a level no greater than 7.5 percent above the 25-member EU. United States imposed similar quotes on mid-May.
Under WTO rules, if no agreement is reached within 90 days, the EU is permitted to impose the 7.5 percent "safeguard" until the end of the year.
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