/javascript" src="../static/js/analytics.js"> CalTrade Report - ''Chinese Textiles: Quotas Not a Solution'' - ''Chinese Textiles: Quotas Not a Solution''../">CalTrade ReportAsia Quake Victims Kansas City Star, 11/28/05 - Kansas City Star, 11/28/05 - ''Chinese Textiles: Quotas Not a Solution''  - ''Chinese Textiles: Quotas Not a Solution''../i/shim.gif

top banner Revised

Friday, August 25, 2006


Become a CalTrade Member--It's Free!
Front Page
Page Two
PR Newswire
Trade Leads
Press Releases
Partner Orgs
Advertise Opp.
Contact Us
Int.Time Clock
Currency Calc
Cal Links
Free Services

Our Car


E-mail PagePrint Version

''Chinese Textiles: Quotas Not a Solution''

Kansas City Star, 11/28/05

A recent pact with China restricting clothing imports for three years is a testament to the power of the U.S. textile lobby. Other industries have tried to dilute the competitive threat from China, but few have succeeded.

Textile quotas, however, may prove a mixed blessing for their supporters. The deal signed earlier this month in London restricts the growth of Chinese imports in 34 categories. That should provide some breathing space for U.S. producers, but it's likely to be temporary.

Some Chinese producers already are saying they plan to move into higher-end products. More T-shirt production, for example, will move to Bangladesh, while Chinese companies go into dressier, more-profitable garments.

If so, then the result will mirror the 1980s, when quotas on Japanese cars undercut the competitiveness of Detroit by encouraging Honda and Toyota to enter the luxury-car market. Quotas only made the Japanese challenge more powerful.

For consumers, import quotas reduce choices and keep prices higher than they would be otherwise. Even if most consumers don't notice much of a change, quotas will deny them the bargains that would have been available.

Implementing import quotas is no solution to an industry's long-term problems. But in this case, producers should have thought more carefully about what they wished for.

Go back, or read the latest opinions:

''Resuscitating Trade''

New York Times, 07/13/06

''The Sky's the Limit''

Washington Post, 06/15/06

''About That Free Trade…''

New York Times, 05/15/06

''Trading Jobs''

Los Angeles Times, 04/19/06

''Misguided Backlash''

Los Angeles Times, 03/24/06

''A Flat Tax for Developing Countries''

Deepak Lal, The Cato Institute, 03/16/06

''Trade And the China Card''

Sebastian Mallaby, Washington Post, 03/06/06

''A Win-Win in Korea''

Washington Post, 02/03/06


Web Design & Development by Turn-It-Digital in Los Angeles