U.S. retail say no to import quotas

U.S. retail say no to import quotas

HANOI: Thirty-five U.S. retail and manufacturing giants including
Nike, Gap and K-Mart have urged Washington not to impose quotas
on Vietnamese apparel exports ahead of next week's opening round
of U.S.-Vietnam textile negotiations.

In a letter sent to U.S. Trade Representative Robert Zoellick
on Thursday last week, the companies said Washington's "rush to
seek quotas is very troubling" and could result in supply
shortages.

"We urge the administration not to restrict Vietnam's apparel
trade. Vietnam constitutes an extremely important sourcing
opportunity for us, especially in light of the continuing
uncertain economy, shifting security conditions and the upcoming
termination of the international quota system."

The 10-year international Agreement on Textiles and Clothing
among World Trade Organization member countries expires at the
end of 2004.

"To the extent any quotas are established, we ask that they
are limited to products for which there is substantial U.S.
production and at levels truly reflective of Vietnam's
potential," they said.

The three-day formal negotiations kick off in Hanoi on Feb.
19. U.S. officials have not set a time frame for the agreement to
be concluded, but Vietnam has admitted it wants to draw out the
talks.

"We want three rounds of negotiations because it gives
Vietnamese enterprises more time to adjust their production
plans, but I'm afraid that the Americans will only want one
round," said Mai Hoang An, general director of the state-owned
Vietnam Textile and Garment Corp. (Vinatex).

Vietnam's textile exports hit $2.7 billion in 2002, a 31.6
percent rise compared with the previous year, with the U.S.
market counting for $900 million of the total figure, according
to official Vietnamese figures.

Last month total textile exports were valued at $250 million,
a year-on-year increase of 69 percent. -- AFP