China has asked Turkey to immediately?revoke its decision
to impose quotas on 42 categories of Chinese textile imports, said
Chong Quan, spokesman for the Ministry of Commerce, on
Sunday.
Just days before the implementation of a free global textile
trade agreement, Turkey announced on Thursday (local time) that it
will impose the measures on some Chinese-made textiles because of
threats of market disruption.
"We are shocked and strongly oppose this wrongful decision,"
Chong said.
Two dozen of the affected categories are still subject to quota
management. Quotas in 10 categories were removed in 2002 and the
rest have never been subject to quotas.
According to a World Trade Organization agreement inked a decade
ago, WTO members are to lift all quotas on textile trade on January
1, 2005.
But some textile manufacturers who fear losing market share
asked the WTO to delay removing quotas. When the trade body refused
their requests, they turned to their own governments to protect
their businesses.
Chong said the Turkish decision violates free trade principles
and deprives China of exercising its rights under the WTO
agreement. Turkey has been asked to handle the issue in accordance
with WTO rules.
"We can resolve the issue through dialogue and cooperation
rather than impeding bilateral economic and trade relations," Chong
said.
China will uphold its right to submit the dispute to the WTO, he
added.
With the decades-old quota system limiting textile exports
ending next Saturday, some are worried that Chinese textiles will
sweep the world market. The WTO estimates that within three years
China will produce more than half of the world's textiles, up from
17 percent last year.
To address these concerns, China announced on December 12 a
series of measures to restrain textile exports, including
collecting tariffs on some textile and apparel exports.
Although China's response received positive comments from trade
partners, its textile industry still faces challenges, especially
from the safeguard measures to which China agreed when it entered
the WTO, said Cao Xinyu, deputy director of the China Chamber of
Commerce?for Import and Export?of Textiles (CCCT).
The move allows any WTO member to limit textile exports on the
grounds that its local market will be disrupted. The measure can be
easily abused since it is simpler to be implemented than
anti-dumping actions: there is no need to prove the exporter is
selling at prices below the cost of production.
The Bush Administration imposed safeguard measures on imports of
Chinese knitted fabrics, dressing gowns and bras in November and on
socks in October. It was also considering five requests by the US
textile industry to have caps on shipments of Chinese-made
trousers, shirts and underwear.
(China Daily December 27, 2004)