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China : Efforts to Avert Clash on Textile With US Firms

2003-8-12
In an effort to avert a possible clash with the US firms over product
safeguards a lobby group will head to the United States next week said senior official from textile industry.

According to a deputy director of the China Chamber of Commerce for Textile Imports and Exports, who requested anonymity, the lobby group will include representatives from major textile companies, industrial associations and the government.

The official declined to identify the companies or reveal other details about the trip.

The lobby effort is the latest action from China in the face of
possible safeguard demands by some US textile companies.
On July 24 the American Textiles Manufacturers Institute (ATMI) applied to the US Government for a renewal of restrictions on Chinese-produced knit fabrics, gloves, brassieres and dressing gowns.

The World Trade Organization agreement (WTO) calls for quotas on textiles and apparel to be eliminated by 2005, but under a special deal that allowed China to enter the WTO in late 2001, safeguards can be imposed on Chinese goods if the "orderly development'''' of trade in the US textile market is threatened.

The official said the Chinese lobby group will form a close alliance
with US importers and retailers to oppose the safeguard because their interests will be damaged if the restriction is imposed. "So the United States should be cautious about starting this procedure, which will benefit no side," the official said.
 
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