After a long dispute, China and the European Union have finally come to an agreement regarding textile trade. China has said that it will set limits on exports of 10 types of textile products to the EU.
These products will see limits of between 8% and 12.5% through 2007. Among the items included are T-shirts, flax-yarn and bras. It has been said that this arrangement would also work well to settle similar disputes between the U.S. and China.
The United States has expressed similar concerns since the surge of Chinese products was unleashed by the Jan. 1 abolition of a decades-old global system of quotas.
Washington has already slapped temporary restrictions on seven types of Chinese garment and textile products, provoking an angry response from Beijing.
A while back, China said that it would raise tariffs on 74 categories of textile exports in an effort to ease concern from the European Union and United States, but neither were satisfied with this move.
It looks as though China has taken a step in the right direction this time, however. The U.S. Commerce Department is studying the agreement between the European Union and China according to a spokesman.
There has also been a lot of tension between China and the United States over China’s currency. A while back, the U.S. gave a China a six-month deadline to make the currency more flexible, but China said that it could not do so in a set timeframe.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
