US curbs on Chinese textiles to benefit Pakistani exporters

The failure of negotiations between the United States and China over the US import restrictions on Chinese textiles and apparel would provide an opportunity to the Pakistani exporters to cash in on the situation, according to the exporters here.
Quoting the US Commerce Department spokesman, they said the negotiations on three categories of the Chinese textiles and apparel had ended without any resolution and as a result, quotas on the US imports of brassieres, dressing gowns and knit fabric from China would remain in place for the whole year.
The quotas would restrict the growth in the three categories to 7.5 percent above the previous year's level, they added.
The Bush administration had announced its intention to impose the quotas in response to the petitions filed by the US textile industry.
China's World Trade Organisation (WTO) accession agreement included a textile specific safeguard that allows other WTO members to restrict imports of textiles and apparel to China against the rapid increase in those imports, causing market disruption and impeding the orderly development of trade.
The safeguard mechanism also requires the United States to consult with China in the 90 days after the quotas are imposed on alternate ways to restrain trade.
The Bush administration officials met the Chinese officials to discuss the issue in mid-January, early March, and the week of March 22.
The US textile industry's representatives had hoped that the consultations would provide an opportunity for the Bush administration to negotiate a broader agreement with China that would restrain textile and apparel imports across a wide range of products.
The American Manufacturing Trade Action Coalition (Amtac), a textile industry group, Washington Co-ordinator, Auggie Tantillo said that the Amtac was "pleased" that the quotas were imposed, but "disappointed that the Chinese government stymied efforts to negotiate a reasonable comprehensive agreement, which would limit the growth of all sensitive textile and apparel exports to the US to a level, that will not disrupt the U.S. market in the future."
Amtac would file additional petitions, seeking quotas on the Chinese imports "as necessary," he said without specifying any particular categories as likely targets.