China : Brazil limits Chinese textile exports

Chinese textile exports to Brazil have increased in the past year putting Brazilian manufacturers under pressure, said Brazilian Trade Ministry.

Following this critical situation, Brazil signs up an agreement with China in Beijing to prevent Chinese textile exports to Brazil, informed Ivan Ramalho, Trade Secretary of Brazil.

The agreement is to be signed up by China's Vice Commerce Minister Gao Hucheng and Ramalho.

According to this agreement, Brazil will impose quotas on eight types of Chinese textile exports, the Brazilian ministry informed.

The products amount to 60 percent of Brazil's total textile imports, the ministry said.

According to Brazilian Trade Ministry, Chinese textile exports to Brazil shot up five times in the past three years from US $28 million in 2002 to US $149 million in 2005.

Sales by Chinese textile manufacturers amounted to 3.3 trillion yuan (US $409 billion) last year, registering a huge increase of 116 percent from 2001.