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Import of textiles could be next target of Obama Govt
Sep '09
Will Sino-US trade war over tires spread out to other sectors? It is a million dollar question on the lips of exporters from across all sectors and the textile industry probably could turn out to be the next battle ground between the two countries.

Although there are no clear signs yet, some Chinese textile and garment enterprises have started taking preventive measures against a probable safeguard measure imposed by the Obama Administration on imports of textiles and clothing.

The US administration could take recourse to measures of quality and safety in a bid to reduce imports of textiles and apparel from China, to avoid being dragged to the World Trade Organisation (WTO) by China.

Earlier, the US and China had a major trade friction over imports of Chinese textiles and garments in 2005. The two sides finally reached an agreement, whereby, US imposed quota restrictions on over 21 categories for 3 years, ending December 2008.

As per the agreement, the quota restrictions lapsed from January 1, 2009, but due to the economic recessionary trends blowing across the United States, Chinese exporters could not take advantage of the same.

Industry sources say that trade protectionism is clearly on the rise, under the guise of global economic downturn and weak consumer demand. Experts advise, especially exporters of sensitive textile and clothing to be on their guard.

Fibre2fashion News Desk - China

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