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Textile surge for short period, informs Commerce Minister Bo Xilai

May '05
Chinese Minister of Commerce Bo Xilai said the surge of textile and garments' exports of the country is a "short-term phenomenon" in the wake of the elimination of quota regime.

When meeting with visiting Spanish Minister of Industry, Commerce and Tourism Jose Montilla Thursday, Bo was quoted as saying the United States and the European Union (EU) have decided to limit certain types of Chinese clothing imports, claiming that the surge has disrupted their markets.

Bo noted that relevant figures have proved that the exports of clothing began to decline since March.

The reason for China's textile and garments exports increase to the European and American developed nations in the first quarter of 2005, Bo explained, was because they retained 70 to 90 percentof the quotas till the last moment the quota regime had to be doneaway with.

Worldwide quota regime had to expire from Jan. 1, 2005, according to previous round of world free trade talks. The world had a 10-year transitional period to eliminate the regime on a step-by-step manner from 1995.

"(The surge) was normal if people consider that the world trade regime was undergoing from a distorted one to one of normal free trade," Bo acknowledged. "The surge was different from one under the normal trade conditions, and should be regarded as an outcome of China's balanced rights and obligations in its accession to the World Trade Organization (WTO)."

To allay world worry about the rise of clothing exports, China took a number of self-control measures including adding export taxon garments and textile goods from the beginning of the year. Consequently, China's exports of clothing dropped from last March.

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