CRI NEWS

China Imposes Textile Duties to Streamline Exports

2004-12-13 5:49:47 CRIENGLISH.com

China is to impose export duties on certain textile products. The move comes ahead of the global transition to free textile quotas starting next year.
To tell us why here's CRI's Lin Lin:

The Agreement on Textiles and Clothing under the World Trade Organization dictates that all quotas restricting textile and clothing products among WTO members are to be eliminated by the end of this year.

The trade volume under current quota restrictions accounts for about 70 per cent of total global textile trade. The removal of quotas is causing concern amongst many foreign textile producers who fear there could be a sudden upsurge in exports from China. For this reason China is taking steps to cap its textile exports to protect the domestic industry against possible trade barriers, triggered by the quota liberalization.

Based on consultations with major Chinese producers and industry groups, the Ministry of Commerce has decided to impose tariffs on textile exports, to avoid made-in-China textiles being dumped overseas. The ministry spokesperson, Chong Quan, says China faces a "safeguard" threat; this is a provision in the WTO rules that allows WTO members to limit imports on the grounds that its local market is being disrupted. Hencethe tax imposed will help Chinese enterprises survive the trade wars.

Chong Quan says that by levying increased tariffs, China aims to enhance its monitoring of the textile industry, and encourage high-value producers to compete in the foreign market.

The move is a key element among eight measures taken by the ministry to ensure a smooth transition to a quota-free age in the global textile trade. Others measures include releasing textile export information in a timely manner, encouraging enterprises to export in an orderly way, and encouraging industrial self-discipline.

The spokesman for the Ministry of Commerce also called on Chinese manufacturers to prepare for increased trade protectionism against the country and other difficulties following the end of textile quotas.

In addition he urged that quality rather than quantity should be the target for China's textile industry, and therefore higher costs for Chinese textile exports could be good for healthy and sustainable development.

He also indicated that dialogue and cooperation will be increased amongst governments, industrial associations and manufacturers so as to safeguard the rights and benefits of Chinese companies, and realize common development.

Lin Lin, CRI News

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