TRALAC - Trade Law Centre

China Scraps Textile Export Tariffs

Tuesday, 31 May 2005

Source: Just

China says it will remove export tariffs on 81 categories of textiles that were introduced at the start of 2005 and will also cancel tariff increases on 74 products planned to start Wednesday, according to the Chinese Ministry of Finance.

The unexplained announcement is a turnaround from China’s pledge to push up tariffs on 74 products from 1 June onwards.

China imposed duties on a range of textile goods on 1 January in an attempt to prevent the US and the EU from introducing protectionist measures to stop a surge in cheap exports after global trade quotas ended at the start of 2005.

However, the US has already imposed a set of quotas on a range of textile categories, while the EU is still in negotiations with China over the situation.

China says it is still seeking a solid conclusion to trade feuds with the US and the EU, and believes that restrictive action so far taken by the two parties is unwarranted.