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Export bandwagon may loose steam due to new trade barriers
Feb '09
Industry experts point out that international trade protectionism is expected to rise further in 2009, because of the spreading international financial crisis and China will face more trade frictions in 2009, and have warned Chinese companies to expect more new features of trade barriers across the world.

First of all, trade frictions will be diversified, integrated and concealed. More and more countries will try to set up barriers under the veil of product quality and food safety as excuses in order to protect their domestic companies. Technical, ecological and sanitary measures are projected to be main obstacles to China's exports.

Other kinds of trade barriers like intellectual property rights and corporate social responsibility will find more takers in the coming months. Countervailing duties may also be imposed by countries to slow the pace of imports. The duty drawback measures implemented by the Chinese government may also be held up as excuse.

The main sectors which are expected to face countervailing duties from other countries will mainly be textiles and garments, iron and steel, machinery, shipbuilding which have been the main beneficiaries of the tax breaks announced by the Chinese authorities in the last six months of 2008.

The main countries or regions where the Chinese companies may face flak are the East European and Latin American countries which have similar manufacturing capabilities but lack the price competitiveness of their Chinese counterparts.

Fibre2fashion News Desk - China

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