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