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US, China knit textiles deal

London, Nov. 8 (Reuters): The United States and China reached an agreement on Tuesday on reining in China’s booming clothing and textile shipments to the United States.

US trade representative Rob Portman and Chinese commerce minister Bo Xilai announced the deal at a joint news conference in London and hailed it as a success for both the sides.

“I believe the textile agreement shows our ability to resolve tough trade disputes in a manner that benefits both the countries,” Portman said.

The accord is aimed at smoothing over a rough spot in the US-China trade relationship before President George Bush visits Beijing in the middle of this month.

China’s exports of clothing and textile products to the US jumped more than 50 per cent in the first eight months of 2005 to nearly $17.7 billion following the end of a global quota system on January 1.

That prompted US textile producers to seek protection under a ‘safeguard’ provision. The measure allows WTO members to restrict the growth in Chinese imports to 7.5 per cent annually when there is a surge.

The Bush administration has imposed safeguard curbs on billions of dollars of Chinese clothing imports this year. But because the curbs have to be renewed annually, textile groups have pushed for a comprehensive agreement limiting imports until 2008 when the provision expires.

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