US & EU probe textile exports from China's neighbours

13 Jul '06

2 min read

Jump in textile consignments from Thailand and Vietnam has prompted the Trade Ministries of US and EU to probe the real source of shipment with a finger of suspicion pointing towards Chinese businessmen.

They fear that the consignments with labels Made-in-Hong Kong and Made-in-South Korea could be of Chinese origin.

Fear stems from the fact that textile shipments from these countries to US have more than doubled this year prompting the trade officials to find out the 'real' source.

Reason behind the malpractice as officials allege is export quota limiting the volume of textile exports from China to US and EU.

China had agreed to a new quota system that will be in place till 2008 restricting exports of clothing to EU and the US to an identified limit.

This has forced the textile manufacturers to find a way around for transshipping their product to US and EU.

If charges are found true in probe conducted by Hebei's provincial Government, then quantity of subverted clothing found by the US and EU officials will be deducted from future Chinese export quota.

Meanwhile, Cambodia registered seven fold increase in their export to EU.

Chinese apparel exports of Hebei to EU have slided by 12 percent during January-May 2006 period.

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