China accuses US of betraying spirit of WTO

Latest safeguard measures prompt action
ALAN PEAT
IT SEEMS that China may take action against the latest US safeguard measures against Chinese exports of clothing and textile products by raising a case with the World Trade Organisation (WTO).
According to the Washington Trade Daily, the Chinese commerce ministry spokesman, Chong Quan, accused the US of a “betrayal of the fundamental spirit of trade liberalisation espoused by the WTO”.
However, when China acceded to the WTO, it agreed that safeguard measures could be imposed on its products if a sharp rise in its exports disrupted other countries’ domestic markets.
And this is what the US claims is happening.
Under this special import safeguard provision the US can request consultations with
China by the end of the month, with a mutually accepted agreement expected within the following 90 days.
But, if no agreement can be reached, then a growth cap of 7.5% a year can be placed on textile imports from China.
The US has already considered three cases in the textile industry, and is to introduce safeguard measures on cotton knit shirts and blouses, cotton trousers, and cotton and man-made fibre underwear. There are four other cases currently being considered.