Brazil : China limits textile export to Brazil up to 2008

Textile agreement between Brazil and China is on the go, confirmed Luiz Fernando Furlan, the Minister of Development, Industry, and Foreign Trade.

Chinese counterpart decided to regulate part of their textile exports to Brazil till 2008, added Furlan.

He added that China asked for a promise from Brazil not to apply safeguard mechanisms against other Chinese products.

Though Brazil rejected this proposal, Furlarn assured Brazil would discuss with China before taking protectionist measures on other products.

While Brazilian proposal was seen as "basis" for an agreement, the matter will be discussed at a meeting to be held at Beijing, China in January.

The safeguards would cover synthetic fabrics, textured polyester threads, silks, velvets, sweaters and pullovers, embroidery, and knitwear shirts.

China has yet to carry out legal examination of agreement, under which it has self-imposed restrictions on textile exports to Brazil.

Fibre2fashion.com