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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (30537)	5/21/2005 1:29:45 PM
From: regli	Read Replies (1) \| Respond to of 116555

China wants to defuse textile controversy welt.de Peking voluntarily increases export duties for numerous products - European Union demands further discussions Peking/Brussels - China is striving to defuse the controversy over rising textile imports with the U.S. and the European Union. Higher duties on exports are supposed to contain the flood. The government in Peking increased the so far minimal export duties for 74 product categories by four to five times. Input products such as linen yarn, which as an annoyance to the EU were duty free, are now charged 30 cents a Kilo. The step followed after the U.S. imposed import limitation on Chinese goods and after increased pressure by the European Union, which is considering similar preventive measures. Prime Minister Jiabao promised the price increases to EU external commissioner Benita Ferrero Waldner. Since the world-wide textile trade was liberalized at the beginning of this year, the exports from China rose like an explosion. The new exports duties, which apply starting June 1, constitute up to five per cent of the commodity value. There will be tariffs of up to 10 cents for trousers and shirts in contrast to the present two cents. Currently profit margins for shirts barely hit 25 cents, according to the Minister of Trade Bo Xilai. Bo however, refused to introduce quantitative restrictions as required by the USA. In three categories China reduced export duties and in another two groups eliminated them completely. The European Union commission reacted reservedly. "We must discuss this thing in more detail with the Chinese", said a spokeswoman. Next week, a Chinese trade representative will be in Brussels.