US-China may not reach textile deal

    US-China may not reach textile deal 

    It is unclear whether China and the United States will reach a comprehensive textile trade deal like the one China struck with the European Union, said Commerce Secretary Carlos Gutierrez.

    "Whether (the consultation) leads to a so-called comprehensive agreement or not is something we'll see. We are in the talks right now and I don't want to commit to any outcome," Gutierrez said in an interview with Reuters on Friday.

    The United States restricted imports of some pants, underwear and other clothing from China in May in response to a surge in shipments following the end of a global quota system on Jan. 1.

    Washington acted under a special provision of Beijing's 2001 entry into the World Trade Organization, which allows member countries to impose emergency curbs on China's textile and clothing shipments if imports shoot up. That measure expires at the end of 2008.

    U.S. textile groups would like the United States and China to negotiate a comprehensive textile pact so they do not have to keep filing petitions through the end of 2008.

    The recent EU-China agreement governs bilateral textile trade through the end of 2007. The EU also promised "restraint" in imposing import curbs in 2008.

    Gutierrez refused to say if a similarly structured deal would be acceptable to the United States.

    Trouser decision delayed.

    After the interview, the Bush administration announced it needed nine more days, or until July 31, to consider a request for import restrictions on wool trousers from China.

    It was the second time in two weeks the Bush administration delayed a decision on a request for curbs.

    The White House has been struggling to round up support for a free-trade agreement with Central America, which faces opposition from many textile-state lawmakers.

    With the House set to vote next week on that pact, the delay appears to give the White House some leverage in winning over textile-state support.

    Gutierrez insisted any decision on additional import curbs would not be influenced by the timing of the vote on the U.S. Central American Free Trade Agreement, or CAFTA.

    "We're going to look at each case on its merit. We're not going to move the timing around based on anything else," Gutierrez said.

(2005-7-26)

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