US-China textile trade deal close
The US and China appear to be close to agreement in their long-standing trade dispute over textile exports.
A trade deal would ease tensions ahead of a visit by President Bush to Beijing in the middle of this month.
The US and China are expected to sign a deal in Geneva on Tuesday limiting Chinese exports in 34 sensitive categories, industry sources say.
Chinese clothing exports have surged since global quotas ended in January, sparking concern in the US and Europe.
'Sensitive exports'
"There are still some outstanding issues, but I think they'll be cleared up," said Cass Johnson, president of the US-based National Association of Textile Organisations.
He said that China has agreed to sharply limit its exports in 14 of the largest and most sensitive categories, including trousers, shirts, knitwear, underwear and bras, to 5.5% in 2006, 7.8% in 2007 and 10.3% in 2008.
According to industry sources, in 20 other categories, growth would average 10-12% in 2006, 12-15% in 2007, and 16% in 2008.
Chinese textile exports to the US increased by 50% in the first half of 2005 to $17.7bn (£12bn), following the expiry of the Multi-Fibre Agreement, which allowed rich countries to set strict textile quotas.
And a spokesman for China's textile industry also confirmed that a deal had been done.
"Both the US and China have compromised in reaching this textile deal," said Sun Huabin of the China National Textile and Apparel Council.
China had originally wanted a deal only until the end of 2007, but in the end followed the precedent set by the earlier trade deal with the EU.
But the US had originally sought to limit the growth of Chinese textile exports to 7.5% for the duration of the deal.
Protectionist pressures
US trade officials have acknowledged that substantial progress was made in talks last week, but trade spokeswomen Christin Baker said that "nothing is agreed until everything is agreed".
However, US newspapers reported that US trade representative Rob Portman would sign the deal with Chinese Commerce Minister Bo Xilai during negotiations over a world trade deal that are taking place in Geneva this week.
A textile trade deal would help ease the growing protectionist pressures in the US Congress over China's growing trade surplus with the US, which is set to reach $100bn globally this year.
And it would help clear the way for success in the global trade talks that are due to take place in Hong Kong in December.
China is part of the group of developing countries that is urging the US and the EU to make further concessions in order to open their markets to agricultural exports from poor countries.
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