Fighting the System: Are Chinese Import Qoutas Unfair?

The pressure of domestic textile industries on the government for limits on Chinese textile imports had induced a large number of domestic retailers to band together and file suit against the Bush Adminstration. The article discusses the end to an international system, allowing any country to ship as much of their product to the United States as they wish. The lawsuit focuses US policy to single out China in the textile import market, even though China remains a minor player in the industry, largely due to restrictions placed on the country following its initiation into the World Trade Organization in 2001. The U.S. Association of Imports and Apparel is arguing that new qoutas are being considered based solely on the fear of a surge in imports from China, and that many areas in which domestic firms are seeking protection are not ones in which domestic firms actually produce any goods. We talked in class about import restrictions and how discouraging foreign markets can boost sales domestically. In this case however, discouraging China, a country that isn't currently a major player in the U.S. textile market, from exporting goods to the U.S. does not make sense economically. If the domestic market is opening up to foreign competition, then restricting one source of competition does nothing to stop the flow of textiles into the country, it merely encourages other foreign sources to produce a greater quantity. If the domestic textile companies wish to help out their waning industry, then they must look in new directions for answers. The Bush Administration needs to realize what's going on likewise, and realize that their current policies do not make a whole lot of sense.