LexisNexis(TM) Academic - Document
LexisNexis(TM) Academic - Document
Copyright 2005 The Financial Times Limited
Financial Times (London, England)
July 26, 2005 Tuesday
London Edition 1
SECTION: INTERNATIONAL ECONOMY; Pg. 12
LENGTH: 432 words
HEADLINE: CHINA CUTS EXPORT TARIFFS AS EUROPEAN UNION HINTS AT ALLOWING MORE TEXTILE IMPORTS TO SAFEGUARD RETAILERS' STOCK
BYLINE: By ALAN BEATTIE and ALEXANDRA HARNEY
DATELINE: HONG KONG and LONDON
BODY:
China cut export tariffs on 17 types of textiles restricted by the European Union yesterday as the EU hinted that it might allow in more Chinese imports than originally agreed to avert the risk of Europe's retailers being left with empty shelves, report Alexandra Harney in Hong Kong and Alan Beattie in London.
A statement posted on the Chinese finance ministry's website yesterday said that export tariffs on wool-knit coats, wool trousers and other goods would be lifted from August 1.
China introduced export tariffs on 148 categories of textiles in January and raised them sharply in May in an effort to head off import curbs from the US and EU amid a deepening global trade row. It cancelled some of these in late May. Last month Beijing agreed with the EU to limit annual growth in its textile exports for the next three years.
Separately, the EU signalled a possible compromise over curbs on imported Chinese-made sweaters yesterday after protests from European retailers who note that a quota agreed last month has already been reached, leaving millions of garments stranded on ships or at airports.
Ralph Kamphoner, senior adviser on international trade at EuroCommerce, an association of retailers and wholesalers, said: "There is a very real risk for traders who have already signed contracts and did not expect that the quota would be filled so quickly. Shops may well be left with empty shelves later in the year."
The quota for sweaters had been filled much more quickly than for other categories of textiles, Mr Kamphoner said, catching some importers and retailers by surprise.
Acknowledging these concerns, Claude Veron-Reville, spokesman for the EU trade commissioner, Peter Mandelson, said yesterday: "We're discussing with China and the member states whether there's a need for flexibility."
Chinese textile exports have surged since a decades-old global quota system was dismantled in January.
The US has restrained yearly increases in certain categories of Chinese textile shipments to 7.5 per cent.
China has indicated that it would remove tariffs for any country that restrains its exports, as that would impose a double penalty on exporters. "In a way, it's reacting to the actions being taken (by China's trading partners)," said Willy Lin, vice-chairman of the Hong Kong Textile Council.
China's decision to cut export duty shaves off a layer of cost for exporters. It appears to affect exports to all markets, so that companies shipping to other countries, such as Japan, which have not imposed restraints on China's textile shipments could potentially benefit, Mr Lin said.
LOAD-DATE: July 25, 2005
Copyright 2005 The Financial Times Limited
Financial Times (London, England)
July 26, 2005 Tuesday
London Edition 1
SECTION: INTERNATIONAL ECONOMY; Pg. 12
LENGTH: 432 words
HEADLINE: CHINA CUTS EXPORT TARIFFS AS EUROPEAN UNION HINTS AT ALLOWING MORE TEXTILE IMPORTS TO SAFEGUARD RETAILERS' STOCK
BYLINE: By ALAN BEATTIE and ALEXANDRA HARNEY
DATELINE: HONG KONG and LONDON
BODY:
China cut export tariffs on 17 types of textiles restricted by the European Union yesterday as the EU hinted that it might allow in more Chinese imports than originally agreed to avert the risk of Europe's retailers being left with empty shelves, report Alexandra Harney in Hong Kong and Alan Beattie in London.
A statement posted on the Chinese finance ministry's website yesterday said that export tariffs on wool-knit coats, wool trousers and other goods would be lifted from August 1.
China introduced export tariffs on 148 categories of textiles in January and raised them sharply in May in an effort to head off import curbs from the US and EU amid a deepening global trade row. It cancelled some of these in late May. Last month Beijing agreed with the EU to limit annual growth in its textile exports for the next three years.
Separately, the EU signalled a possible compromise over curbs on imported Chinese-made sweaters yesterday after protests from European retailers who note that a quota agreed last month has already been reached, leaving millions of garments stranded on ships or at airports.
Ralph Kamphoner, senior adviser on international trade at EuroCommerce, an association of retailers and wholesalers, said: "There is a very real risk for traders who have already signed contracts and did not expect that the quota would be filled so quickly. Shops may well be left with empty shelves later in the year."
The quota for sweaters had been filled much more quickly than for other categories of textiles, Mr Kamphoner said, catching some importers and retailers by surprise.
Acknowledging these concerns, Claude Veron-Reville, spokesman for the EU trade commissioner, Peter Mandelson, said yesterday: "We're discussing with China and the member states whether there's a need for flexibility."
Chinese textile exports have surged since a decades-old global quota system was dismantled in January.
The US has restrained yearly increases in certain categories of Chinese textile shipments to 7.5 per cent.
China has indicated that it would remove tariffs for any country that restrains its exports, as that would impose a double penalty on exporters. "In a way, it's reacting to the actions being taken (by China's trading partners)," said Willy Lin, vice-chairman of the Hong Kong Textile Council.
China's decision to cut export duty shaves off a layer of cost for exporters. It appears to affect exports to all markets, so that companies shipping to other countries, such as Japan, which have not imposed restraints on China's textile shipments could potentially benefit, Mr Lin said.
LOAD-DATE: July 25, 2005
posted by Eastlaw at 12:45 AM
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