China
and the US yesterday failed to solve the long-simmering
textile dispute, an impasse described by industry experts
as a "loss-loss" result which could see more
categories of Chinese textiles facing restrictions.
The
first sign of disagreement came when the two-day sixth
round of talks in Beijing ended before noon previous rounds
of talks continued till late into the night or were prolonged
by a day.
An
official from the Chinese Ministry of Commerce said the
talks had failed, and that a statement which was not available
till late last night was being drafted.
US
textile negotiator David Spooner said in a statement issued
by the US Trade Representative's Office that the trading
partners had failed to reach an agreement that meets the
needs of US manufacturers and retailers.
"Our
overall goal ... is to reach a longer-term solution that
will permit greater stability in textile and apparel trade,"
it said.
"The
US has been using its right under China's World Trade
Organization accession agreement to invoke safeguards
in cases of market disruption or the threat of market
disruption, and we will continue to do so as appropriate."
Neither
the Chinese nor the US side gave any indication of whether
they had made any progress or the reason for failing to
reach an agreement. Nor did they say whether another round
of talks was scheduled.
The
failure surprised both Chinese and US industries which
had expected a deal yesterday since there were positive
signs at the last round of talks at the end of September.
"The
US is sticking to a low rate in export growth which China
cannot accept," said an industry insider close to
the talks.
The
agreement China inked with the EU in June is the bottom
line for the country, but the US stand is too rigid, he
said.
China
and the EU reached an agreement limiting annual export
growth in 10 types of textiles to 8-12.5 percent till
the end of 2007.
Analysts
believe that there would be no agreement soon and both
Chinese manufacturers and US retailers and consumers would
bear the brunt of the failure.
The
Bush administration is expected to impose restrictions
on a wider range of Chinese textile imports.
Before
the latest round of talks, the US government announced
that restrictions on Chinese curtains and drapery would
be imposed from today if a comprehensive agreement were
not reached.
Immediately
after the talks broke down, the US organization of textile
manufacturers said it would file petitions for fresh protection
and seek to ensure that existing safeguards were rolled
over seamlessly when they lapsed at the end of the year.
The
value of Chinese exports to the US was down by at least
US$2-3 billion since January, estimated Sun Huaibin, spokesman
for the China National Textile and Apparel Council. "Since
27 categories of textiles are under restriction investigation
compared to nine for which quotas have been set, the loss
will be bigger," Sun said.
Xu
Bing, a spokesman for the soon-to-be-held Chinese Export
Commodities Fair, said textile orders at the country's
largest foreign trade fair may be affected.
But
the US is not the winner though its domestic textile producers
will gain some protection in the short term, said Mei
Xinyun, a trade expert at the Chinese Academy of International
Trade and Economic Cooperation.
American
cotton farmers, retailers and consumers benefit from low-cost
Chinese imports; and they lose out if no deal is struck,
Mei said.
Brian
Cousins, president of Cloudveil Mountain Works Inc, a
Wyoming-based outdoor apparel company, was quoted by the
New York Times as saying: "We're looking right now
at other alternatives, but there are just so few places
outside of China to get these products made."
(China Daily October 14, 2005)
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