China, US edge closer to textile trade deal
(Reuters)
Updated: 2005-09-29 06:58

The United States and China are edging closer to a deal that could curb billions of dollars in clothing imports from China, but one more round of talks may be needed, US industry officials said on Wednesday.

"I think the bet right now is they're seriously going for it," said Cass Johnson, president of the National Council of Textile Organizations. "It's certainly a better dynamic than we've seen in the past."

Chinese workers work in a factory in Huaibei, East China's Anhui Province in this picture taken on September 15, 2005. [newsphoto]

US and Chinese negotiators met for the third day on Wednesday in pursuit of a deal that would resolve textile trade frictions that have become a headache for both sides.

Chinese shipments of shirts, pants, bras, underwear and other clothing to the United States surged dramatically when a global quota system ended on January 1, prompting the U.S. industry to seek relief.

The two sides made little progress toward a deal in two previous rounds of talks in San Francisco and Beijing, getting snagged on basic elements such as the length of the pact. The United States wants a deal that runs through 2008 and China prefers an agreement that lasts through 2007, like the deal it struck with the European Union.

Washington already has restricted many clothing imports from China under a special "safeguard" provision of Beijing's entry into the World Trade Organization. That measure allows countries to hold clothing and textile imports from China at 7.5 percent above the previous year in response to a "market-disrupting" surge.