ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Monday, February 3, 1997 TAG: 9702030081
SECTION: NATL/NATL PAGE: C-5 EDITION: METRO
DATELINE: BEIJING
SOURCE: Associated Press
Averting millions of dollars in sanctions, China and the United States reached a trade agreement Sunday that heralded a warming in relations and could mean a doubling of U.S. textile sales in China.
Beijing had threatened levies on imports of U.S. fruit, beverages and other goods in retaliation for $19 million in penalties imposed by Washington last year after China exceeded U.S. textile import quotas.
The pact signed Sunday extends for four years a 1994 treaty that expired at the end of last year. It will reduce some Chinese tariffs, keep others at current rates and eliminate some non-tariff barriers for U.S. products.
Officials did not specify what those barriers were. Imports can be hindered through a variety of bureaucratic means, including minute inspections of goods, transportation delays and labeling requirements.
China got slight increases in some categories of its export quotas.
``For the first time ever in textile talks, China and the United States have worked out all of their differences,'' said lead U.S. negotiator Rita Hayes. ``We wouldn't have this agreement if it hadn't been for the mutual understanding and trust that prevailed.''
The pact established a ``level playing field'' for the textile trade, she said.
China holds the largest share of the U.S. textile market after Canada and Mexico, with $6.65 billion in sales in 1995, the last year for which figures are available,
U.S. textile manufacturers shipped $64 million in garments and fabric to China in 1995, a figure Hayes said could be doubled with improved market access and optimum performance by U.S. exporters.
After almost two years of tensions over trade, human rights and other issues, the successful conclusion of five days of talks both sides called ``very difficult'' reflects a surge in good will.
Washington has agreed to work with Beijing on China's long-stalled entry to the world's main trade body, the World Trade Organization, and another U.S. trade delegation was in town this past week for talks.
Secretary of State Madeleine Albright is due in Beijing later this month, and a visit by Vice President Al Gore is expected in the spring.
In Washington, U.S. Trade Representative-designate Charlene Barshefsky hailed the ``solid agreement that meets our critical objectives.''
``We have our first textiles market access agreement with China, and we have strengthened enforcement terms against illegal transshipments'' through third countries, she said.
LENGTH: Medium: 54 linesby CNB