Last Friday the Administration announced that it was going to pursue quotas to limit Chinese textile imports. Elizabeth Becker reports: U.S. Moves to Limit Imports From China (via The Ledger of Florida, May 14).
The Bush administration, reacting to a flood of Chinese clothing imports since January, announced on Friday that it would impose new quotas on cotton shirts, trousers and underwear from that country...
Ironically, overall textile imports to the US haven't risen all that much. Alexandra Harney, Geoff Dyer, and Alan Beattie report: Beijing may raise textile tariffs to curb exports
...Analysis of data by trade economists reveals that the rise in Chinese textile and clothing exports to the US in the first two months of this year has mainly come at the expense of other exporters.
In January and February, US textile imports rose 14 per cent, and clothing imports 15 per cent, from a year earlier.
But that compared with total imports rising by 17 per cent. While US textile imports from China increased by 40 per cent and garment imports by 70 per cent, the increase in imports from elsewhere slowed sharply to compensate.
John Palmer, over at the Eclectic Economist, describes some of the problems with this quota program: U.S. Trade Policy: Tax Consumers and Give the Proceeds to China?
In the end, U.S. consumers will pay higher prices for their clothing. And, most likely, quotas on imported clothing from China will hurt poor consumers in the U.S. more than they will hurt rich folk.
Palmer has some useful links to other news stories and blog postings.
Great post! I love it.
Posted by: Account Deleted | March 16, 2009 at 01:19 AM