During annual trade talks, the United States and China made some progress, but did not exactly resolve the textile export conflict that has been going on between the two countries.
China and the U.S. did sign some smaller agreements in relation to other areas of trade such as agriculture and bio-technology, and banking. The U.S. agreed to provide $3 Million to fund training programs in these areas in China in the civil aviation and petro-chemical sectors.
The real issue at hand, however, is that the two countries just can’t see eye to eye on what to do about Chinese textile exports. The U.S. has been pressuring China to put limits on its textile exports, due to claims that U.S. manufacturing jobs suffer because of them.
In June, China reached an agreement with the EU over similar issues and placed limits on 10 types of its textile exports. The U.S. has been considering placing tariffs on imports from China, though Fed Chairman Alan Greenspan has advised against it. AFX News Limited reports:
The export-driven economic powerhouse stands to lose up to three bln usd in trade with the US because of such WTO ‘safeguards’ implemented by Washington on seven categories of textiles from China.
Li Dongsheng, vice-minister of the State Administration for Industry and Commerce (SAIC), said he hoped to see China broker a European Union-style consensus on the textile issue with the US.
“I hope that the US and the Chinese government can agree to some kind of win-win situation as well,” said Dongsheng.
This week, trade ministers from 30 countries of the World Trade Organization will meet in China and discuss an agreement that could lower trade barriers and help the economies of some poor countries.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
