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China awaits textile pact fine print
(Reuters)
Updated: 2005-11-09 00:35

Chinese reaction to a textile trade deal signed with the United States ranged from relief to bitterness and uncertainty as Chinese exporters waited for details of the new quotas.
The deal that Chinese Commerce Minister Bo Xilai and U.S. Trade Representative Rob Portman sealed on Tuesday limits Chinese exports of 34 clothing and textile categories, such as shirts, trousers and underwear, for the next three years.

"The deal struck over Chinese-U.S. textile trade will create a stable, predictable environment for the trade, and greatly strengthen the confidence and determination of Chinese businesses and U.S. importers to accept and make orders," said the China Chamber of Commerce for Import and Export of Textiles in a written statement.

But even Bo and other Chinese officials voiced frustration at U.S. efforts to block rising Chinese textile exports after a global quota system expired at the start of this year.

Immediately after signing the deal, Bo said the quotas were "a far cry from our original expectations."

The deal generally sets growth rates for clothing imports from China at 10 percent in 2006, 12.5 percent in 2007 and 15 percent in 2008. For textile products, the rates are 12.5 percent in 2006 and 2007 and 16 percent in 2008.

After that, U.S. rights to restrict such imports will shrink.

The quotas are higher than the 7.5 annual growth allowed by current U.S. safeguard restrictions, and China's Ministry of Commerce and state-sponsored industry associations said the deal was the best Chinese manufacturers could expect.

A former Chinese trade negotiator, Zhou Shijian, told the Chinese-language China Business Daily: "China was in an innately unfavorable negotiating position" because of U.S. trade rules.
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