Textile Quotas Or Cancellation Will Be Abolished.

Textile quota quotas will end in December 31st of this year. Cao Xinyu, vice president of the China Textiles Import and Export Chamber of Commerce, said there is no official news quota yet to be cancelled on schedule. However, the United States has no legal basis for the implementation of quota restrictions on textiles in China. Under the new situation, the export of US textiles will be threatened by market shrinkage and trade protectionism.

There is no legal basis for further implementation of quotas.

Recently, it was reported that Scott Quesenberry, the special textile negotiator of the US trade representative office, told participants at the Prime Source Forum in Hongkong in early April 2008 that there were no successor plans and the rules of the World Trade Organization (WTO) could not be changed. The US restrictions on textiles in China at the end of this year will be terminated according to the original agreement.

In this regard, the reporter interviewed Cao Xinyu, vice president of the China Textiles Import and Export Chamber of Commerce. He said that the current government is leading the consultative work in this area. There is no official cancellation of quotas yet, but it is certain that the United States has no legal basis for the implementation of quota restrictions.

It is understood that at present, there are about 21 categories of textile products exported to the United States, which have quota restrictions. The implementation is based on the 242nd paragraph of the report of the working group on China's accession to the WTO (that is, special restrictions on Textiles), which was determined by the two sides in 2005 and will end in December 31st this year, beginning in January 1, 2006.

As for the situation of my textile exports to the United States after the end of the quota, Cao Xinyu, vice president of the China Textiles Import and Export Chamber of Commerce, said that the United States would not have the legal basis to adopt the similar quota system to restrict the export of textile products in China, nor could it be supported by the WTO system.

If the United States intends to take new measures, it must find relevant new legal basis, and it also needs consultation and negotiation between the two governments.

Or facing two threats

On the other hand, the quota restrictions on textiles exported to Europe have ended in December 31, 2007. The current export of European textiles is bilateral monitoring measures.

That is to say, under the premise of canceling the quantity restriction, the 8 textile categories under the memorandum should be included in the bilateral monitoring system. The Chinese side will implement the export license and the European side will implement the automatic import license system. The monitoring time will be from January 1, 2008 to the end of 2008.

At the same time, China implements the qualification of enterprise management.

According to Cao Xinyu, the legal basis for the bilateral monitoring system for exporting to Europe is also a "242 paragraph". It is mainly a consensus reached between China and the EU. After the end of this year, the new measures will depend on the EU's request. If the other side does not ask for new requirements, it will enter the free trade state according to the existing rules of WTO.

And the situation in the United States will be the same. If the US side does not ask for the request, the European textile will also enter the free trade.

At the same time, Cao Xinyu said that due to the impact of the subprime mortgage crisis, according to the data available, China's textile exports to the United States have declined for 5 consecutive months. What changes will be needed in the future will need to be observed. However, if the United States still requests a restriction on the "quantity explosion", it will not be sufficient.

However, many industry insiders also point out that the so-called freedom of trade is not completely free, and it is also subject to many non-tariff barriers, such as anti-dumping and countervailing restrictions, which are to a certain extent greater than the harm of quotas.

Cao Xinyu also pointed out that in the new situation, in the US market alone, the subprime mortgage crisis caused the US market to enter a recession, which will have an impact on its domestic industry, and inevitably lead to the rise of trade protectionism. Then, the textile exports to the United States will face the threat of the shrinking of the US market, and on the other hand, it will also face the threat of trade remedy measures.