Karen’s Korner
Trade, Textiles, Politics, Observation & More | Information & News

One could not have lived in the free world over the last 10 days without having heard of import quotas levied against specific Chinese textiles by the United States. During this time, 7 of China’s most exported clothing items had a quota imposed. China countered this move with one of their own – imposing an export tariff on the very articles the U.S. placed quotas on, almost 4 times the export tariffs of other similar goods.

This is a shrewd move on the part of the Chinese government’s trade ministry, because the United States can only levy tariffs and quotas on Chinese imports until the year 2008. Sounds like a long time, huh? We’ll grant you that, however, the Chinese nation will only continue to become an uber-giant in the global textile market between now and then. When China became a member of the World Trade Organization, part of the deal (at the behest of the United States) was the ability to levy and impose such methods through 2008. China hopes that it can buy goodwill and a little less scrutiny through being “a team player” globally until that time … then look for that last domino to fall.

While we really didn’t expect the Bush administration’s quotas to provide much bite, at least the Chinese trade ministry reported accurately to it’s governmental overseers the reality of the U.S. decisions – the U.S. is their largest importer of textiles, not to mention goods overall, it makes virtually no sense at all to push the point when merely waiting will produce a similar result, albeit later than sooner.

At least the U.S. bought a little more time to figure out how to deal with the Chinese and Indian juggernauts that a “no quota system” has brought. During which time the american textile industry and cotton growers have a little extra time to “grab a better hold” or “gain better footing” to weather the storm that looms.

Translation?? Buy american made products. It helps create jobs for americans and it helps keep those jobs in America, but that is only the first step. The United States has to become self-sufficient again, from the raw materials needed, to the production of the finished product. This would make us stronger both at home and abroad.

… stepping off of the soapbox and slinking away muttering something about commonsense …