Industry adopts 'wait & watch' over textile treaty
10 Nov '05
2 min read
Bo Xilai & Robert Portman. Photo Courtesy Min Of Commerce PRC
Its been the third day since Minister of Commerce of PRC Bo Xilai and US Trade Representative Portman put their seal on the much touted MOU on textile and apparel trade between China and United States on November 8, 2005 in London.
Much belated treaty happened in the face of Chinese textiles and clothes exports, which grew to $13 billion in the first months of this year, a rise of 65.5 percent on the same period last year.
Yet, the Chinese textile industry seems to send mixed signals over the said pact.
China Chamber of Commerce for Import and Export of Textiles commented on the deal in a written statement:
"The deal struck over Chinese-U.S. textile trade will create a stable, predictable environment for the trade, and greatly strengthen the confidence and determination of Chinese businesses and U.S. importers to accept and make orders."
The deal which restrict 34 categories of Chinese imports to the US had discordant note emanating from within the Chinese entourage itself, much early.
Even Bo Xilai and some negotiating team members sounded frustrated to the extent that Xilai ended up saying the deal was a "a far cry from our original expectations."
Zhou Shijian a former Chinese trade negotiator confirmed to the Chinese-language China Business Daily that "China was in an innately unfavorable negotiating position" due to US trade rules.
Among Chinese textile manufacturers, it was a mixed reaction as the real implication of the MOU was not yet clear and more details were awaited from the Chinese Government.
There is another section among Chinese exporters like Fan Dabiao, the General Manager of Soho International who fears more restrictions may be in the offing.
But, the two major countries may sit and smoke peace pipe over the textile MOU, for now!
marketing@alchempro.com
