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US-China textile negotiations conclude, major issues outstanding

Textile negotiations between the United States and China concluded with significant progress in some areas but with significant differences between the two sides remaining. Both sides agreed to meet again to continue the negotiations. The US industry reiterated its call for a comprehensive agreement that reasonably would limit China’s growth of unfairly subsidised textile and clothing exports to the United States to a percentage close to the WTO safeguard level of 7.5 per cent annually through the end of 2008.

“China’s proposal is still unacceptable to the US textile industry in terms of breadth of coverage and in length (number of years covered). Despite apparent progress in the negotiations, no deal has been reached. The US textile industry remains steadfast in its promise to walk away from any bad deal because no deal is preferable to a bad deal,” said American Manufacturing Trade Action Coalition executive director Mr Auggie Tantillo. “For the first time, China began to negotiate constructively, but it still has a significant way to go before we can reach a deal that the industry can support. Other key sticking points for the US textile sector include (1) the industry’s ability to utilise the safeguard on categories not covered by the agreement and (2) growth levels given to China on covered product categories,” added Mr Cass Johnson, president of the National Council of Textile Organizations.

Ten safeguard cases covering knit fabric, wool trousers, sweaters, dressing gowns, curtains, socks, swimwear, skirts, nightwear, and women’s woven shirts are due for decisions by the US government between now and early November. Another 13 cases covering cotton yarn, cotton trousers, manmade fibre trousers, cotton shirts, manmade fibre shirts, men’s woven shirts, underwear, brassieres, and synthetic filament fabric, wool suits, manmade fibre coats, polyester filament fabric, and cheesecloth are due for decision in January 2006.

“If China is not willing to include all of these products in a comprehensive agreement, we would urge the US government to impose safeguards on any categories where safeguard petitions have been filed but were not covered by the deal,” said Mr Karl Spilhaus, president of the National Textile Association.