US, China try again for textile pact
(Reuters)
Updated: 2005-09-27 06:32

But China wants any pact to end in 2007 and the United States to promise not to use the safeguard provision again.

U.S. Trade Representative Rob Portman said earlier this month that the second condition was unacceptable.

"We're not going to give away our ability under the WTO accession with China to deal with new ... safeguards when there's a surge," he said.

Last week, textile industry groups filed new petitions asking for restrictions on wool suits, synthetic coats and additional textiles from China. They have also asked for existing curbs on bras, underwear, pants, shirts and other clothing to be renewed when they expire at the end of this year.

U.S. clothing importers and retailers accuse the textile industry of trying to extend the import protection they enjoyed for decades under the global quota system. They want any agreement to allow for progressively higher imports.

"Otherwise, we haven't weaned the industry off this protection," said Brenda Jacobs, an attorney who works with the U.S. Association of Importers of Textiles and Apparel.

Importers also want flexibility built into the pact so they can draw on the next year's quota if the current year's quota is filled, or shift product from one quota category to another.

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