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U.S. unlikely to impose trade restrictions on Chinese textiles

Industry News | June 1, 2009 | By:

Despite widespread demands among U.S. textile industry groups for trade protections against Chinese imports, practical and political barriers will prevent substantial restrictions, experts predict. China’s entry into the World Trade Organization (WTO) in 2001 gives it some protections; the WTO requires the U.S. to legitimize trade measures affecting Chinese imports before putting them into practice, a burden of proof that prevents quick action. In addition, the U.S. is hampered in invoking anti-dumping protections because while the U.S. textile industry wants restrictions on Chinese apparel imports, the U.S. apparel industry relies heavily on Chinese sources. Finally, China’s own economic downturn and unemployment problems led to an October 2008 announcement from China’s Ministry of Commerce that it would not place licensing requirements (a form of self-regulation) on textile and apparel exports beginning in 2009.

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