China, US to resume talks on textiles in Washington

China and the United States will hold the fifth round of talks on textiles from Sept. 26 to 27 in Washington D. C., China's Ministry of Commerce announced in Beijing Friday.

According to Julia K. Hughes, vice president of US Association of Importers of Textiles and Apparel, who is attending a meeting in Beijing, Chinese chief negotiator will be Sun Jiwen, deputy director of the Foreign Trade Department of the Ministry of Commerce while David Spooner, special negotiator for textile at the US Trade Representative's office, is his American counterpart.

Just a few months after the global textile quota system terminated on Jan. 1, 2005, the United States has reimposed quotas on several lines of Chinese textile products over an allegedly drastic export surge.

Munir Ahmad, executive director of International Textiles and Clothing Bureau (ITCB), said "the convenience of using China as an alibi has given the possibility of applying restrictions on China's export under the provision of its WTO accession Protocol."

After four rounds of talks without reaching any agreement, China is yet to strike a "win-win" deal with the United States on export quantities and growth rates for the coming few years.

Hughes, who is attending "WTO and China: Beijing International Forum," said, US companies want to "source in China" and want to "have a better environment to do business with their most welcome trade partners."

However, she said she was not optimistic on the two sides reaching any agreement. "They are still very far apart until they find a way to breakthrough."

In a press release issued after the conclusion of the fourth round of negotiations Sept. 1, the Ministry of Commerce said both sides sought resolutions to the textile disputes with a positive attitude and flexibility during the talks.

But still, no agreement was reached as the two sides failed to eliminate the differences in some principled issues, according to the press release.

Experts say "the differences in some principled issues" mainly refers to the scope of textile products that the United States can take restrictive measures, base quantity and range of annual growth rate of the textiles that China will export to the United States.

As to the base quantity, China said figures should be that of 2005, that is, the period of time after the elimination of global textile quotas, while the United States insisted on taking statistics of 2004.

Goals of the US retailers and importers for the fifth round of talks, according to Hughes, mainly include "limited number of quotas," "base limits set using 2005 trade," "growth rate of 20% to 30%," "paperless, no-cost visa system," "no new safeguard actions," and "duration through 2008."

In the United States, the restrictions have forced retailers and importers to change in sourcing for 2005 and 2006.

Hughes said they want to have "predictability" which, in the current circumstances, is a most important factor in sourcing.

The uncertainty is not caused by the Chinese side, she said, adding that it's because of US protection restrictions.

Munir Ahmad also said he is afraid that trade in textiles and clothing would be faced with a further period of transition, with China being called upon to bear the brunt although the US trade policy lies at the heart of the issue.

The US Association of Importers of Textiles and Apparel will put pressure on the US government for a concession to reach agreement with the Chinese side, Hughes said.

Source: Xinhua