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US, China make progress in textile talks
(AP)
Updated: 2005-11-03 09:32

The US industry would prefer a broad deal, through 2008, that limits imports of goods in all textile and clothing categories that have been threatened by Chinese imports.

On the issue of safeguard quotas, the administration announced late Wednesday that it had reached agreement with China to re-impose quotas limiting Chinese imports of socks. That quota had expired last week and the US industry has petitioned for it to be reinstated.

"By re-imposing quotas on sock imports from China, the administration is maintaining the status quo for our domestic sock manufacturers," Spooner said. "It would simply be unfair to our sock producers if — in the midst of these negotiations — we permitted a safeguard to lapse."

Meanwhile, the inter-agency administration panel that is ruling on the industry's safeguard petitions announced late Wednesday that it was extending until Nov. 8 decisions on whether to re-impose quotas on shirts and blouses, skirts, pajamas and swimwear. Decisions in those cases had been due on Tuesday.

US trade officials refused to discuss the areas where progress was made. They declined to say when the next round of talks might be held.

With President Bush scheduled to visit China in mid-November, there was speculation both sides were seeking to wrap up the negotiations so a deal could be reached during his visit.

The administration is struggling to show progress in lowering a ballooning trade deficit with China. Last year it hit a record $162 billion; so far this year it is running 30 percent above the 2004 pace.

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