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Saturday, May 14, 2005

US Impose Textile Quotas on China

This isn't really a surprise, it has been coming for some time now. What isn't really clear is how China will react. It isn't at all evident that this will bring a floating of the yuan any nearer. It will also be interesting to see how the EU - who are also examining whether to initiate a similar quota process - will respond. It is not at all evident they they may not try and open a breach to sell "trains and boats and planes" etc. in enhanced quantities.

The Bush administration.... announced on Friday that it would impose new quotas on cotton shirts, trousers and underwear from that country...........The announcement came one day after President Bush met with the leaders of five Central American countries and the Dominican Republic to promote a trade pact with these nations that has stalled in Congress.

The textile industry has opposed the pact, the Central American Free Trade Agreement, as another threat to the American industry, but Mr. Johnson's organization broke with the other trade associations and endorsed the pact, known as Cafta, this week. Kimberly Elliott, a trade specialist at the Institute for International Economics, said that the administration undoubtedly reached a quick decision in favor of the American textile industry in part to win more support for Cafta. "The administration has been working the link between the safeguards and Cafta for some time, but I think they would have done this eventually even if Cafta didn't exist," Ms. Elliott said.
"If the administration is going to take a hit from China for this," she said, "it might as well get some benefit for Cafta."


FransGroenendijk said...

Unfortunately it looks like the EU is planning to act the same as the US-administration The European Trade Commissioner Peter Mandelson called on Tuesday (17 May) for formal consultations with Chinese authorities over a surge in T-Shirts and flax yarn imports.

Slightly but not completely off topic: I do appreciate a link to my site is among the small number shown on this new version of your blog.
Of course I made a link to this blog on my site too. I placed it in the top-category "idealistic not naive, realistic not cynical". I get the impression that since you pay more attention to political (as oppposed to economical) issues you fit into that category even better than you did before

Edward Hugh said...

Hi Frans

Nice to see you back :).

I recognise your point about the EU, and in fact I have just posted something on this.

On links: basically I have had a big clean-out, and am starting again a bit at a time. So gradually I will be adding more.

I'm happy with your categorisation, although whether I am more 'political' I will leave for the readers to decide.

Incidentally, you will note that there are virtually no comments at the moment. This is probably also part of the slow build up. I started back about two weeks ago, and little by little the readers trickle back. I am curious to see how all this works out. But at the moment it is pretty much 'laid-back' blogging.