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          China-US textile talks make progress, but no deal
          (Reuters)
          Updated: 2005-09-28 20:10

          U.S. textile groups have pushed the Bush administration to try to negotiate an agreement that would restrict 30 or more categories of clothing and textile imports from China through 2008, when the safeguard provision expires.

          "The Chinese do seem to be negotiating more on scope (or the number of products covered). That seems to be where the focus is right now," the textile industry aide said.

          One sticking point is China's desire for Washington to promise it would exercise restraint in using the safeguard provision if Beijing agrees to voluntary curbs on its clothing exports to the United States, the industry aide said.

          U.S. Trade Representative Rob Portman has said Washington would not give up its right to use the measure when there is a market-disrupting surge not covered by the pact. The EU agreed to the restraint provision in its pact with China.

          U.S. clothing importers and retailers want flexibility built into the pact so they can draw on the next year's quota if the current year's quota is filled, or shift items from one quota category to another.


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