Trade Friction Heating Up Textile Exports To The United States

The US economy deteriorated and the unemployment rate climbed. The United States released its employment data for 08 years in early November, and the unemployment rate rose to 6.7%, the highest in the past 15 years and 10 million 300 thousand in unemployment.

A few days ago, US President Obama's economic advisory group predicted that another 4 million Americans might lose their jobs this year, or the unemployment rate would rise to more than 9%.

Therefore, Obama has decided to adopt a bolder stimulus plan than originally planned to increase the number of employment posts created or saved in the next two years from 2 million 500 thousand to 3 million.

This move is worrying that the possibility of the rise of US protectionism will increase further.

The trade friction continues to heat up. In the economic downturn, the United States launched a series of difficulties against Chinese products within a week before Christmas.

In December 19th, the US government lodged a complaint with the World Trade Organization (WTO), referring to the fact that China has introduced a number of measures to reward "brand" to provide inappropriate export subsidies to increase sales of Chinese brand goods worldwide, including textiles, refrigerators, beer and so on.

The US side said that these measures have harmed the interests of American workers and producers, and called for consultations under the WTO dispute settlement mechanism.

Mexico also participates in the actions of the United States.

In December 22nd, the International Trade Commission voted for the US Department of Commerce to levy a countervailing duty of up to 40% on specific steel pipes imported from China.

China immediately responded and asked WTO to set up an expert group to investigate the legality of countervailing measures and anti-dumping measures adopted by the United States on standard steel pipes and other products, but it was blocked by relevant procedures in the United States.

In December 23rd, the US Department of Commerce announced a preliminary ruling on the countervailing case of kitchen shelves imported from China and imposed a 13% to 197% countervailing duty on related products.

The final decision is expected to be announced in May 2009.

The award "brand" measures were pointed out to subsidize the above-mentioned Sino US trade friction cases. The award "brand" measures directly involved some of the textile enterprises' products, such as Bosideng down clothing and sunshine brand worsted fabric.

The US consultation request is mainly aimed at China's multiple incentives at the national level and at many provincial and municipal levels.

At the national level, China's Ministry of Commerce set up a "China export brand" selection, while the State Administration of quality supervision, inspection and Quarantine has "China world famous brand".

But by the Sanlu milk powder incident, the AQSIQ issued a notice in September 20, 2008 that it no longer directly handled the famous brand selection activities related to enterprises and products.

The US side refers to China's various levels of government agencies providing diversified subsidies to the selected enterprises, including cash incentives for exports, preferential loans to exporters, subsidies for research and development of new export products, and financial allocation to reduce export credit insurance.

China's Ministry of Commerce responded that China has always respected the WTO rules, opposed trade protectionism, and requested the United States and Mexico to negotiate with China in accordance with the WTO rules.

First of all, Obama assumed the position of president of the United States. His position was more unfavorable to the mainland's textile exports to the United States, plus the goal of creating or saving 3 million jobs in the next two years to ease the severe unemployment situation in the United States.

The Sino US textile agreement has ended, quotas no longer exist, and neither side has reached a new consensus to monitor. The mainland's textile exports have really entered the stage of no restrictions, but this has made the industry even more worried.

Last year, the abolition of quotas in Europe was replaced by the bilateral monitoring between China and Europe.

In the past 08 years, the export volume of 5 types of sweaters and 26 kinds of dresses exported to Europe increased by more than three times over the 07 years, while the other monitored categories increased by 30% to two times.

Fortunately, the EU has yet to take any anti-dumping actions.

But if the similar increase appears on textiles exported to the United States this year, will the United States easily give up?

In fact, the Textile Organizations in the United States have been actively deploying and waiting for the opportunity to move. Once the number of textile products exported to the United States has recorded a marked increase, I believe they will take action soon.

In addition, with the risk of some countercharges and other accusations, I am afraid that the mainland's export of American textiles will go through another round of turmoil this year.

Under the impact of the financial tsunami, economic growth slowed down worldwide and unemployment increased.

It is believed that in the next one to two years, the situation of international trade frictions will become more severe in order to protect their own economic interests.

The mainland has always been the most important target in this regard. The Ministry of Commerce of China has concluded that the prosecution case in China this year will exceed the sum of the past few years.

Yang Jing: editor in charge