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Mexico hopes to resolve textile trade dispute with China
Jun '13
courtesy: El Universal/Edrian Hernandez
courtesy: El Universal/Edrian Hernandez
The Government of Mexico and representatives of Mexican textile and apparel associations have expressed confidence that they would be able to resolve the ongoing trade dispute with China in three months time, in view of the agreements reached between the two countries during the visit of Chinese President Xi Jinping to Mexico.
Addressing a press conference, Francisco de Rosenzweig, Mexican Foreign Trade Undersecretary highlighted China’s commitment to resolve the textile trade dispute with China.
"We are taking a three-month horizon to achieve a solution to this problem," said De Rosenzweig, who addressed the media, along with representatives of the textile and garment sector. 
He informed that the next bilateral meeting between China and Mexico will take place later this month in China.
In October 2012, Mexico filed a compliant with the World Trade Organization (WTO) asking it to start discussions with China. Mexico blamed the Chinese Government of subsidizing the textile and garment manufacturing sector, resulting in unfair competition for the Mexican textile and clothing industry.
During his visit, President Xi and his Mexican counterpart Enrique Peña Nieto agreed to create a “comprehensive strategic partnership” to strengthen the political and commercial ties between the two nations. The leaders also laid emphasis on encouraging Chinese investment in Mexico.
The Undersecretary said they received China’s commitment to resolve the textile trade dispute without any “concession or some other service”.
However, Moses R. Kalach Bales, president of the Mexican National Chamber of Textile Industry, said they will not compromise their legal rights and would continue with their complaint to the WTO.
He said the problem has not been solved by the state visit of the Chinese President. He pegged the annual losses for the Mexican textile industry at US$ 15-20 billion due to undervaluing of Chinese products. 
He added that Mexican textile exports to China would increase from the current US$ 150 million to about US$ 500 million in the coming years, if the trade dispute is resolved.

Fibre2fashion News Desk - India

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