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U.S.-China Textile Pact Averts Trade War

<i> From Reuters</i>

China and the United States reached agreement today on extending a deal on textiles, averting a multibillion dollar trade war, an official with China’s Ministry of Foreign Trade and Economic Cooperation said.

The eleventh-hour agreement followed all-night talks between U.S. negotiator Rita Hayes and a team of Chinese officials on renewal of a 1994 textile accord and resolution of a dispute over U.S. penalties on Chinese exports.

Hayes had said Saturday she was confident the last-ditch talks would succeed after extending by one day a Jan. 31 deadline for multimillion dollar penalties on China’s exports.

Washington slapped $19 million worth of penalties on imports of Chinese textiles in September, saying Beijing was shipping textiles through third countries to evade quota restrictions.

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China threatened to retaliate by temporarily banning U.S. imports.


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