No chance of textile quota extension: WTO aide
Reuters, Washington
An international trade official said Wednesday there was no chance that a decades-old world textile quota system would be extended past year end, despite private sector efforts in the United States and many developing countries to have that done."That position is unchangeable. It's a deal that's already been done, it can't be undone," Cheidu Osakwe, director of the World Trade Organisation's textile division, said in a speech to trade policy specialists. The US textile industry, fearing a flood of cheap Chinese imports when the quotas expire at the end of this year, has been leading an international effort to persuade the WTO to approve a three-year extension of the quota system. However, Osakwe said that WTO members recognise that extending the quotas would unravel a key portion of the 1994 Uruguay Round world trade agreement, which required countries to make difficult trade concessions in a number of sectors. "I strongly believe there will be no government that will table a proposal for an extension" of the quotas, he said. Jennifer Hillman, vice chairman of the US International Trade Commission, said a recent study done by the trade panel showed world textile production making a very large shift into China when the quotas end. Hillman, who emphasised she was not speaking as a representative of the US government or the ITC, said that importers expect to source supplies from a very small number of countries when the quotas end versus the dozens they buy from currently.
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