U.S. Delays Decision on Textile Quotas

The U.S. Commerce Department said it would delay a decision on a new round of import quotas on Chinese clothing and fabric to consider the possibility for a single comprehensive agreement with China to limit textile trade.

A decision on curbing imports of six new categories of products, including wool trousers and brassieres, had been expected this week. It will be delayed until the end of this month so officials can discuss a broader solution with domestic companies and Congress, the department said in a statement.

It’s the first time the Bush administration has offered to discuss an over-arching arrangement to limit surges in the more than $15 billion a year in cloth and clothing from China. The overture follows promises to Republican lawmakers in textile-producing states to crack down on Chinese imports in return for their vote on the Central American Free Trade Agreement.

“This is a pretty high price to pay for CAFTA,” said Gary Hufbauer, an analyst at the Institute for International Economics in Washington. “It could be that the trade liberalization we got with CAFTA could actually be less than what we give up” with a textile arrangement.

Since the Jan. 1 expiration of a global quota system that shielded the U.S. from low-cost textile imports, the Bush administration has sought to stem the wave of fabric from China through a case-by-case approach.

In all, the U.S. placed curbs on seven product areas, was considering six other petitions and Monday announced that it would review five more cases.