WASHINGTON — The U.S.-China textile and apparel talks are back on just weeks after they appeared to break down in Beijing.
U.S. and Chinese negotiators resumed bargaining here on Sunday in an effort to narrow their differences on a handful of key issues blocking a deal to regulate Chinese apparel and textile imports. A spokeswoman for the office of U.S. Trade Representative Rob Portman confirmed the fifth round of talks continued into Monday night.
The two sides have been stuck on issues such as how many products would be included in an accord, how much those products would be allowed to increase and when an agreement would end. People familiar with the talks, who asked not to be identified, said negotiators were considering a deal that would run through 2008 and cover 32 to 34 product categories, with annual growth rates of 10 to 16 percent. However, those details could change.
The two sides were seeking middle ground on language that would allow the U.S. textile industry to file safeguard petitions on products not covered by any broad agreement — an area that has been a sticking point, people familiar with the bargaining said.
U.S. retail, import and textile executives, normally on opposite sides of trade issues, have reached a consensus on the need for a long-term deal to replace the system of safeguard quotas, which leaves uncertainty in sourcing plans. But they differ on what the pact should contain.
Quotas were dropped this year among all World Trade Organization countries, but China’s WTO agreement allowed countries to impose safeguard quotas on its goods, at an annual growth rate of 7.5 percent, through 2008.
“I understand they are narrowing their differences,” said Auggie Tantillo, executive director of the American Manufacturing Trade Action Coalition. “As we’ve always said, we only want an agreement if it is a good agreement and, if it is not, we will continue operating under the safeguard mechanism.”
Tantillo said an accord must contain substantial product coverage and be in place through 2008 with reasonable quota levels. At present, $1.9 billion worth of Chinese imports covered under nine safeguard petitions is being restricted.
The U.S. is to make an announcement today on whether it will impose safeguard quotas on five categories, including swimwear, socks, nightwear and pajamas, skirts, and women’s and girls’ woven shirts.
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Importers, who originally opposed a broad deal with the Chinese, shifted their position and have pushed for an agreement to replace the individual safeguards.
Julia Hughes, vice president of international trade at the U.S. Association of Importers of Textiles and Apparel, said importers want a deal that provides higher growth rates than the existing safeguard cap of 7.5 percent and covers a “reasonable number” of product categories. The association is not pressing for the current safeguards and products in embargo to be lifted before the end of the year.
“The embargoes are behind us,” Hughes said. “We want an agreement that provides predictability for the future.”
Asked whether importers would still seek to branch out on their own to create a system with China that would control goods as they leave the country, Hughes said: “Obviously, if there is an agreement, we don’t need to pursue any separate licensing deal, but that is a fallback if no agreement is reached, and one that we will pursue aggressively.”