After seven rounds of talks, On November 8, 2005, the United States and China signed a Memorandum of Understanding (MOU) that stablished quotas on U.S. imports of selected textile and apparel products from China.
The MOU went into effect on January 1, 2006, and extends through December 2008, at which time the righ of the United States to invoke safeguards under the textile provision of China's WTO Membership Accession Agreement expires. The MOU supersedes the safeguard actions undertaken by the United States in 2005 in response to rising imports rom China.
"The solution of the textile dispute is in line with the common interests of companies in both China and United States, which will benefit and boost the stable development of the bilateral trade relationship," Bo Xilai, the Ministry of Commerce said in an online statement.
Originally Posted: China Business Daily
Author: Angulo Fu