China challenges European textile tariffs
Link: China challenges European textile tariffs
China’s commerce minister announced on Monday that threats from the United States and the European Union to put quotas on Chinese textile exports, his country has decided to abandon limits on exports to the United States and the European Union.
Beginning Tuesday, tariffs on 81 clothing and textile products will be eliminated, although China has reserved the right to take the dispute on quotas before the World Trade Organization at a later date.
The dispute began when sales of some Chinese clothing and textiles went up in the US and the EU following the end of global quotas on January 1. Manufacturers in the US and EU put pressure on their governments to invoke a WTO agreement allowing resumption of quotas in case of a “surge” in imports.
China claims that the decision to reimpose quotas we based on too little data over too short a period of time and placed the blame for the situation on the US and EU for failing to prepare their textiles industries for the end of quotas.
China has also claimed that the EU’s move to single out T-shirts and flax yarn for possible sanctions may violate WTO rules. The EU rejects China’s claims and has said that it was surprised at China’s decision to cancel their tariffs.
