China, U.S. OK pact on imports

LONDON - The United States and China signed a deal Tuesday limiting imports of Chinese clothing and textile products into the United States, ending three months of negotiations over the thorny issue.

U.S. Trade Representative Rob Portman and Chinese Commerce Minister Bo Xilai both described the deal as a "win-win" after a final round of talks, but Mr. Bo later added that it is a "far cry" from China's original expectations.

In the United States, groups representing clothing and textile manufacturers hailed the agreement, while some retailers expressed disappointment that the annual increases were not larger.

The U.S. industry has been pushing for a deal to stem a flood of Chinese imports that began when global quotas were lifted in January, and Tuesday's announcement smooths over the trade relationship between the two nations just more than a week before President Bush makes a state visit to China.

"We don't want to see such a small trade obstacle impede the overall trade and economic cooperation between the two countries," Mr. Bo said through a translator after signing the agreement.

Mr. Portman said the deal - set to take effect Jan. 1 and cover 34 clothing and textile categories, including 14 considered the most sensitive by the U.S. industry - is fair to both countries, and called it an illustration of what "hard work" and "good faith" could accomplish.

Jim Chesnut, the chairman of the National Council of Textile Organizations, said the deal reassures Americans that China wouldn't be able to flood the U.S. market in the next three years.

"This agreement is a victory for hard-working U.S. textile workers," he said.

Auggie Tantillo, the executive director of the American Trade Action Coalition, another industry group representing textile and clothing manufacturers, said, "U.S. textile and apparel manufacturing workers and their communities are big winners today. This bilateral agreement represents a necessary and welcome step towards addressing China's unfair trade practices and highly disruptive levels of trade."

However, representatives of American retailers expressed disappointment with what they saw as overly restrictive limits on future imports.

"Instead of terms that ensure that there is a true transition to unrestricted trade after 2008, the agreement imposes tight quotas on the products of greatest importance to American families: shirts, pants and underwear," said Laura E. Jones, the executive director of the U.S. Association of Importers of Textiles and Apparel.