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To: TobagoJack who wrote (41697)	11/18/2003 8:07:54 PM
From: Joe S Pack	Read Replies (2) \| Respond to of 74559

US to Set Quotas on China Textile Imports Tue November 18, 2003 06:45 PM ET (Page 1 of 2) By Richard Cowan reuters.com WASHINGTON (Reuters) - The Bush administration said on Tuesday it will impose new import quotas on Chinese clothing, opening a new line of attack against Beijing's trade policies and moving to protect American jobs centered in politically important southern U.S. states. The American textile industry praised the decision to impose quotas on knit fabrics, brassieres and dressing gowns. But it said this should merely be a first step toward putting a lid on virtually all of China's textile imports, either through negotiation with Beijing or by Bush administration decree. U.S. Commerce Secretary Grant Aldonas told reporters that the precise import quota would not be known until negotiations are completed with Beijing, which could last up to three months. But he said that under trade rules with China, the United States can limit Chinese shipments of brassieres, knit fabrics and dressing gowns at 7.5 percent above shipments over the past year or so. The U.S. move, against a country already facing trade challenges from Washington, was not roundly applauded. An International Monetary Fund senior advisor for Asia, Steven Dunaway, called the quotas "a big risk in the current environment" and one that could prompt Chinese retaliation. "Concerns over U.S. protectionism in terms of trade and the announcement today that they were implementing some textile tariffs, sent the market reeling," said Hugh Walsh, vice president of foreign exchange at Fortis Bank in New York. Word of the quotas caused the dollar to get battered against all major currencies on fears of growing U.S. protectionism with China, which operates a huge trade surplus against the United States. Putting the quota in perspective, Aldonas said, "There's a sense there's some sort of Draconian reduction (in imports). In fact what it does is ... identify the degree of imports that have already come in and allow some growth on top." Just a few years ago, America's preoccupation with China focused mainly on human rights and Beijing's influence on neighboring North Korea's nuclear aspirations. But with the U.S. economy shedding manufacturing jobs as Chinese imports swelled, the Bush administration has been focusing on trade relations with China.