Key Trade Dispute Solved Constructively;

Agreement Achieves Stability, Predictability Sought by Industry

LONDON - U.S. Trade Representative Rob Portman and Chinese Minister of Commerce Bo Xilai today announced that the United States and China had, after three months of intense negotiations, reached a broad agreement on textile trade. The Agreement lasts through the life of the China WTO Textile Safeguard, through 2008, covers more than 30 individual products and contains quotas that begin at low levels.

“I am very pleased that the significant contribution of time, energy and effort on the part of both countries over the course of the last three months has resulted in an agreement that is fair to the industries in both countries,” said Ambassador Portman. “Minister Bo and I have been in constant communication over the past few months and his constructive involvement throughout our negotiations demonstrate that the United States and China can resolve trade disputes in a manner that benefits both countries. 

“The U.S. goals have been clear.  We sought an agreement that achieves the stability and predictability sought by our retailers and textile producers, who understandably found it hard to plan in the face of unpredictable safeguards. This agreement is a good example of where, through hard work and good faith, constructive solutions can be found to difficult trade issues,” Portman added.

A fact sheet on the agreement is available at www.ustr.gov

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