The comments follow a decision by Washington to accept an appeal by an inter-governmental lobby group that has demanded the US Department of Commerce restrict certain cotton yarn imports. .
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The US Committee for the Implementation of Textile Agreements claims that products using a certain type of cotton yarn are disrupting the US market. .
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Last month, US industry petitioned to limit Chinese imports of socks, bath-gowns, bras as well as adding restrictions on cotton and fabric textiles including trousers and shirts, which they alleged are harming domestic manufacturers. .
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“If the US government allows such momentum despite the facts and WTO rules, it will have a serious impact on bilateral trade and economic ties,” commerce ministry spokesman Chong Quan said. .
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Chong added that China “retains the right to take further action” within the WTO framework if necessary. Textile manufacturers around the world are concerned that Chinese imports will dominate the market when decades-old global quotas end on January 1, 2005. China accuses US industrial companies of wanting to slap on textile quotas based on “assumptions” which in the end would only damage free trade. .
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The action further violates conditions laid out for China’s admission to the WTO three years ago and run counter to the global trade body’s main principle of free trade, Chong said. .
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“The Chinese government has strived to solve the problem through enhancing exchange and co-operation. However, the US government ignored that,” he said..
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Source: Business Day Magazine
Date:11/26/2004
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