To: TobagoJack who wrote (64329 ) 5/30/2005 1:28:18 AM From: elmatador Read Replies (1) | Respond to of 74559 TJ, expect Protectionism and trade wars. The European politicians will try to woo disgruntled electorates by -as usual- blaming the outiders. Watch. China, expecting that: <<China canceled tariffs on textile exports, suggesting the government will take a hard line in talks aimed at avoiding U.S. and European Union caps on its shipments of shirts, pants and underwear. ... The ministry didn't say why it removed the tariffs, which were imposed to control the industry after an end to global textiles quotas on Jan. 1.>> China Cancels Textile Tariffs Ahead of U.S., EU Talks (Correct) (Corrects second paragraph to say global textile quotas ended, drops erroneous Gutierrez initial in fourth.) By Rob Delaney and Yanping Li May 30 (Bloomberg) -- China canceled tariffs on textile exports, suggesting the government will take a hard line in talks aimed at avoiding U.S. and European Union caps on its shipments of shirts, pants and underwear. The government revoked the bulk of tariffs imposed on Jan. 1 and increased on May 20, the Ministry of Finance said in a statement today. The ministry didn't say why it removed the tariffs, which were imposed to control the industry after an end to global textiles quotas on Jan. 1. ``This is a strong gesture from China to the U.S. and EU,' said Long Guoqiang, a senior trade researcher at the State Council Development and Research Center in Beijing. The decision comes three days before U.S. Commerce Secretary Carlos Gutierrez arrives in Beijing for talks on trade issues including textiles. China, the world's largest clothing exporter, has accused the U.S. and EU of abusing trade protection measures by imposing limits on its textile exports and has said it may complain to the World Trade Organization. China's textiles and clothing exports jumped 29 percent in the first quarter after the four-decade-old global quota system ended. The surge has aggravated trade tensions with the U.S., which reported a record $162 billion trade deficit with China last year and is pressing China to revalue its currency. Market Disruption The finance ministry said it scrapped textile tariffs on 81 products. The government had said on May 20 it would raise tariffs fivefold on 74 categories, seeking to head off U.S. and EU limits. The exemptions announced today include all but five of those categories. Under the terms of China's 2001 WTO accession agreement, other countries may restrict the growth in imports of China-made textiles to 7.5 percent, in cases where an increase in shipments causes ``market disruption.' The EU on May 17 demanded immediate action by China to pare growth in T-shirts and flax yarn before it imposes quotas. China ``strongly opposes' an EU plan to impose caps, the Ministry of Commerce said on its Web site yesterday. The government threatened on May 27 to take its complaint to the WTO. To contact the reporter on this story: Rob Delaney in Beijing at robdelaney@bloomberg.net. Last Updated: May 30, 2005 00:43 EDT