Wanted US-China textile deal
Washington (AsiaNews/Agencies) Talks in Washington between China and the United States about Chinese textile exports continue today. Official sources say that after two days the two sides are closer but an agreement still appears far from certain.
"We have made good progress in our discussions over the past couple of days and, although we still have differences, we feel that additional time to work on the issues would be beneficial," chief US negotiator David Spooner said.
Chinese textile exports to the United States rocketed by 627 per cent since global quotas on the trade were lifted on January 1 when China joined the World Trade Organisation.
For critics, the textiles dispute has highlighted what some call China's "manipulation" of its exchange rate to give its exports an unfair edge in world markets.
US textile associations have filed a barrage of petitions with the government demanding new quotas against the Chinese garment exports. But the US Trade Representative's Office says quotas are "cumbersome" and would prefer an agreement that injects some certainty for importers and retailers.
The Washington round is the third since high-level US and Chinese negotiations began.
Industry sources said progress was made in some areas such as the number of Chinese textile products that would be covered by an accord, and the continued use of US safeguards if warranted beyond the scope of any deal.
But the two sides remained far apart on other issues, namely the duration of the agreement, the level at which Chinese exports would be capped, and the starting point at which those exports would be calculated.
The US insists the agreement must stretch to 2008 and that China's textiles export growth should be limited to about 7.5 per cent a year until then.
Conversely, the Chinese delegation wants the deal to expire in 2007 and the annual growth in shipments to be capped at 20 to 25 per cent.
US textile industry notes that nearly 400,000 US textile and apparel manufacturing jobs have been lost since 2001, primarily due to a flood of Chinese clothes.
Other observers point out that the problem cannot be solved with quotaswhich would be lifted in 2008 at the latest anywaybut with greater economic and legal convergence of production and labour markets.
Gary Locke, former Governor of the State of Washington, said that the problem lies in China's low production costs. Trade barriers would be counterproductive and solutions depend on US government policy.
"American workers must have a level-playing field with workers in other countries. Better environmental protection and workplace health rules and safety standards are needed; otherwise, workers in countries in Latin America, Africa or Asia that do not have minimum standards will benefit from production costs and service charges that are lower than those of American workers".
Trade barriers are not good, Locke insists, because to sell US products abroad we must be open to goods and services from other countries.
Furthermore, greater trade with China has brought advantages to other US industries. US companies like Microsoft and Boeing have a big market in China and "there still are some great opportunities for US companies and workers in China." (PB)
.png)
