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Quotas set to expire from year end

27
Oct '08
According to the relevant provisions of China's accession to the World Trade Organization, special restrictive measures on textiles will expire by the end of 2008 and the bilateral textile agreement between China and the United States, as well as with the EU will also end at the same time.

Recently, an official from Foreign Trade Office of the Ministry of Commerce had said that there will be no restrictive quantity and permits of US-bound textile exports and license management of textile exports to the EU from January 1, 2009.

After the elimination of quotas in January in 2005, the EU and the US and other western countries had frequently imposed various trade measures against China's textile exports, due to fears of the huge potential of China's textile industry.

In 2005, after several rounds of negotiations, China signed an agreement of memorandum of understanding on bilateral textile trade with the EU and the US reaching a comprehensive solution to Sino-EU and Sino-US trade frictions related to textile exports and it is this treaty that is ending from December 31, 2008.

The official said, textile export enterprises should avoid blind expansion of production capacity but should strive to improve product quality and value-added.

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