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Woolly row brewing over pants trade
By Jiang Wei (China Daily)
Updated: 2005-07-23 07:13

China is firmly opposed to a US decision to launch safeguard measures against Chinese woollen trousers, saying it will make further consultations between the two sides tougher.

The US Department of Commerce announced on Friday that it has decided to impose limits on wool trousers originating from China. The move makes the trousers the eighth Chinese textile product category to be placed under US restrictions this year.

"This unilateral action of the United States will bring more difficulties to later talks after the two sides have carried out active consultations in the Joint Commission on Trade and Commerce," said Chong Quan, spokesperson at the China Ministry of Commerce.

Chong said the groundless decision did not match preconditions required for the launching of such measures.

The move also violates free trade principles of the World Trade Organization, in particular WTO agreements on textiles and garments, he added.

Meanwhile, the spokesperson reiterated that China is keen to find a mutually satisfactory solution to the knotty issue so as to avoid harm to Sino-US economic relations.

The US Government launched safeguard measures against seven categories of Chinese textile products, including cotton trousers, underwear and shirts, in late May.

The series of restrictions against Chinese textiles comes at the request of the US textile industry, which says it will continue filing complaints to its government so as to restrict the import of additional categories of Chinese textiles and garments.

The Chinese textile industry has been seriously harmed by the restrictions since a number of enterprises have stopped production because of lost markets.

Experts predicted that if such conditions continue, some Chinese enterprises in the sector are likely to go bankrupt and thousands of workers may be laid off.

(China Daily 07/23/2005 page2)

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