US sends Commerce Secretary Gutierrez to resolve textile clash

02 Jun '05

2 min read

Carlos Gutierrez, US Commerce Secretary arrives in Beijing, China for three day visit to talk on the textile dilemma. US imports of clothing from China have witnessed drastic increase since the ending of quota system.

The administration of President Bush has imposed restriction over the import of certain textile product categories such as trousers, shirts, underwear and cotton yarn from China, due to the enormous pressure from the side of domestic industry players.

China has called the US decision as unfair, unjustified and a violation of World Trade Organization regulations.

Reponding the decision to curb textile products imports, China said that it would scrap the raised tariffs on exports of textiles. Now, US fear that it would face trade deficit with China, which reached a record $162 billion last year.

China's stubbornness to revalue its yuan currency at around 8.28 to the dollar have also annoyed lots of law-makers, who claims that it is an unfair trade practice.

China signed an agreement when it tied the World Trade Organization in 2001, that the member countries could impose emergency import restrictions on its clothing and textile shipments if it tend to disruption in their markets.

However trade lawyers in the US informed that there are very little chances that the two countries would able to attain any result, that would prevent the US from restricting quotas at this point.

U.S. Trade Representative Rob ob Portman will also stick together with Gutierrez for talks on Saturday with Chinese Vice Premier Wu Yi, who look after trade matters.

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