China, US fail to reach textile accord
From Max Lee
The Daily Mail’s
Special Correspondent in Beijing

BEIJING—The latest round of Sino-US textile talks broke up without an agreement, the head of US delegation said, fuelling expectations that more US restrictions will be imposed on China's exports.
"We've just ended ... negotiations with the Chinese aimed at reaching a broad agreement," US special textile negotiator David Spooner said in a statement issued by the US Trade Representative's office.
"We have not come to an agreement that meets the needs of our domestic manufacturers and retailers. Our overall goal, as we've said all along, is to reach a longer-term solution that will permit greater stability in textile and apparel trade," Spooner said.
The two sides walked away from the talks, originally scheduled for two days, after the morning session Thursday without setting a date for the next round.
It was unclear if the two sides would be able to work out a deal before the visit to China by US President George W. Bush next month. The lack of an agreement, after what one Chinese report described as "heated negotiations" on Wednesday, raises the prospect that the US government will impose further restrictions on textile imports from China in the face of continued calls for more curbs from the US industry.
Spooner emphasised that Washington reserved this right to limit an influx of Chinese-made clothing and fabrics. "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," he warned.
The Chinese delegation was headed by Lu Jianhua, chief of foreign trade at the commerce ministry which declined comment. The talks were aimed at reaching a comprehensive agreement to regulate Chinese textile shipments which have soared since global quotas were scrapped on January 1.
The US administration, under pressure from its own textile industry, has progressively imposed what it calls "cumbersome" quotas on individual categories of imports from China while pressing for an overall agreement.
The previous round of talks ended without agreement in Washington barely two weeks ago although there had appeared to be some measure of progress and a more positive tone but that seemed not to have been carried over.
"After a day of heated negotiations, China and the United States have not made any progress," the Shanghai-based Oriental Morning Post said of Wednesday's exchanges.
Washington insists, amid a wider range of disputes with China, something must be done about the flood of Chinese textile imports, while Beijing points up that it already has such an agreement with the EU which should provide a model solution.
China and the EU averted a trade war in June when they agreed to limit the growth of 10 Chinese textile exports to 8.5-12.5 percent until the end of 2007.Last week, Washington irked Beijing by accepting a US industry request to consider quotas on another 13 types of Chinese textile exports, bringing the number that could be restricted to 27, with a ruling due in January.
The US textile industry wants a deal that limits imports in more than 19 categories to a 7.5 percent growth rate per year until 2008, according to the American Manufacturing Trade Action Coalition. For its part, China wants to reduce the number of restricted items and wants limits to be lifted at the end of 2007, similar to the EU agreement.