US CONSIDERS BROAD TEXTILE AGREEMENT TO LIMIT CHINESE TEXTILE IMPORTS
On 28 June, Republican leaders promised to protect US-based textile jobs from rising Chinese competition in order to secure the support of Representative Robin Hayes (Republican-North Carolina) for the Central America Free Trade Agreement-Dominican Republic (CAFTA-DR). The promise allowed the accord to pass in US House of Representatives by a 217-215 margin (see related story, this issue).
Later that day, Hayes asked the National Council of Textile Organizations to outline their top priority. In its response the textile lobby group called for a comprehensive agreement to curb Chinese textile imports. The request was forwarded to US Trade Representative Rob Portman on 29 July.
On 1 August, the US Commerce Department announced it would delay a decision on whether to impose a new round of quotas on Chinese clothing and fabric imports in order to consider the possibility of a single comprehensive plan to limit such imports. At the moment, the US is examining Chinese textile imports on a case-by-case basis. It currently has import restrictions in place on seven types of products, and is considering further restrictions (see BRIDGES Weekly, 1 June 2005). This is the first time the US has indicated an interest in a comprehensive accord.
A US Commerce Department spokesman denied any explicit connection between CAFTA-DR and the China decision.
"China appreciates US decision on textile imports", XINHUA, 3 August 2005; "US to Consider Broad Accord on China Textile Trade", BLOOMBERG, 1 August 2005; "Pleas and Promises by G.O.P. as Cafta Wins by 2 Votes", NEW YORK TIMES, 29 July 2005.