CHINA-US TEXTILE TRADE AGREEMENT GOES INTO EFFECT.

BEIJING, Jan 2 Asia Pulse - The Sino-US textile trade agreement went into effect on January 1, 2006, imposing quotas on a total of 21 types of clothing and textiles from China.

After seven rounds of talks, the United States and China in November 2005 signed a three-year agreement on textile trade, imposing quotas on Chinese textile products but clearing a major obstacle to bilateral trade.

A total of 21 types of clothing and textiles have been placed under import restrictions, including cotton trousers. The agreement provides for a progressive increase in imports of major textiles and apparel products from China - by 10 to 15 per cent in 2006, 12.5 to 16 per cent in 2007, and 15 to 17 per cent in 2008.

Some ten kinds of Chinese textile and apparel products exported to the European Union have also been put under quota restrictions, according to an agreement reached by the two sides in June 2005.

"The two textile agreements eliminate most uncertainties faced by Chinese clothing enterprises when exporting goods to two of the most important overseas markets," said Mei Xinyu, a research fellow with the Chinese Ministry of Commerce.

On the basis of the two textile agreements, the Chinese Ministry of Commerce has drafted regulations on the textile quota application process, and from 2006, Chinese textile and apparel companies will try to get those quotas through the new system.