Don't overestimate the influence of revocation of textile quota: Long Yongtu

According to the World Trade Organization (WTO) Agreement, the quota for textiles will be totally lifted world wide starting from 1st Jan. 2005. "The lift of the quota for textiles symbolizes the end of an era and the WTO will enter a new era without quota from then on. However, we must not overestimate the influence brought about by the lift upon the global textile market in the post quota period, and not overestimate the opportunity generated by the post quota period on China's textile market," said Long Yongtu, general secretary of Bo'ao Forum for Asia.

At the summit of "How is China going to meet the challenges in post quota period", Long delivered a speech by saying that the lift of quota for textile is an evolutionary process, which will not bring about any miracles or disasters. There are also many factors affecting the global trade of textile products besides quota, for example, the tariff, green barrier, as well as other non-tariff measures. The lift of the quota for textile products does not necessarily mean that the global textile products will consequently enter the free trade era, and the global textile market also will not experience any fundamental and revolutionary changes in this regard, added Long.

As Long pointed out, due to the lift of quota for textiles, countries around the globe will be terrified by the textile-goods exporting giant as China. And they even have formulated the hypothesis that China's textiles export will set an attack at the global textile market. Out of concern for their own interests, some countries suffer more from the artificial supposition than from the actual influence, which poses a big challenge for China's export of textiles.

Long also noted that Chinese government hoped for a stable transitional period after the lift of quota for textiles, and longed for a growing, stable and healthy global textile market. Therefore, Chinese government will impose specific custom duties on export over six articles such as outer garment and skirt from next year on, which demonstrates China's responsible and constructive determination in maintaining stable and healthy development of a global textile market.

Commenting on the possible unreasonable repellence and attack from the abuse of trade protection measures upon China's textile exports, Long encouraged China's textile enterprises to be brave. He said that the exporting benefits of China textiles did not belong to China alone, but also to many enterprises in importing countries. Actually, in the whole benefit chain, China's textile producers only take ten percent of the total profit, and 90 percent of them go to the brand holders, wholesalers, middlemen and retailers.

According to Long, with an annual import of commodities worthy of 500 billion US dollars China now plays a role not only as an exporting giant but also an importing giant too. For those countries that use abusively trade protectionism will definitely be counter attacked by China in other exports.

By People's Daily Online