Five Steps to Long Term China Solution

The US National Council of Textile Organizations (NCTO), has laid out a five-step process to achieving a long term solution to China's distorting trade practices in the textile and apparel sector.  

1.   A comprehensive textile agreement with China would be an important first step to a long term solution, provided that it keeps China's exports of sensitive textile and apparel products under tight quota control through 2008.

2.    To attack these trade practices through WTO cases and US trade law. NCTO supports passage of legislation by the US Congress to address China's ongoing currency manipulation including the imposition of tariff sanctions on China's exports to the US and allowing US companies to attack Chinese subsidies at their source through the use of countervailing duty laws.

3.     A permanent textile safeguard in the Doha Round of trade talks to address the unique problems posed by China and other non-market economies.

4.     Not to allow China additional access to the US market through loopholes in future trade agreements. Future success on trade liberalisation in this sector hinges upon the prevention of such loopholes being included in future agreements.

5.     Finally is that the US should resist any pressure to lower US textile tariffs during the Doha Round negotiations.

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