US-China Textile Negotiations 

The fifth round of US-China talks on Chinese textiles has ended without agreement, but the two sides will meet again in an attempt to iron out a deal. Although some progress was reached, their differences were not settled.  

The United States is seeking for a three-years deal that runs through to the end of 2008 when its safeguard provision expires, while China wants a two-year agreement only until the end of 2007, like the one it has with the European Union.  

US Industry leaders have been unwilling to replicate the EU-China deal because it only lasts to 2007, and because it does not adequately address growth levels and the ability of the U.S. industry to apply safeguards on products not included in the agreement.

China's proposal is still unacceptable to the U.S. textile industry in terms of breadth of coverage and in length (number of years covered). The U.S. textile industry, which has called for a comprehensive textile agreement that would include a wide range of categories, the industry's ability to utilize safeguard mechanisms on categories not covered by the agreement, and to have the ability to monitor China's growth.        

The United States is seeking to restrain annual growth below 7.5%, China has been seeking at least 12.5%.

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