US nears decision on Chinese clothing tariffs

The Bush administration, already struggling over whether to lift controversial tariffs on imported steel, could announce plans early next week to slap quotas on brassieres, dressing gowns and knit fabric from China, government and industry sources said today (NZT).

United States textile producers want the administration to negotiate a comprehensive agreement restricting clothing imports from the Asian manufacturing giant and hope an interagency decision early next week will set the stage for those talks.

But retailers are urging US officials to reject the textile industry''s request for "safeguard" quotas, warning that American women would have to pay more for their bras.

"With respect to brassieres, China is a major producer," said Erik Autor, vice-president and international trade counsel with the National Retail Federation. "If we have them under quota again with limited growth, I think we''re definitely going to see a rise in prices with a shortage of products."

The United States was required to eliminate quotas on 29 categories of apparel after Beijing joined the World Trade Organisation in December 2001.

However, as a condition of its entry, China agreed to a provision that allows the United States to reimpose annual quotas for up to three years if imports surge.