Bridges Weekly Trade News Digest • Volume 8 • Number 44 • 22nd December 2004
In Brief
CLIMATE CHANGE MEETING TAKES CAUTIOUS LOOK AT POST-KYOTO ERA
On 18 December climate change negotiators wrapped up two weeks of discussions by agreeing to engage in further talks on what might come after the Kyoto Protocol. The tenth Conference of the Parties (COP) to the UN Framework Convention on Climate Change (UNFCCC) convened on a high note in Buenos Aires, Argentina, following the recent Russian ratification of the Kyoto Protocol and its imminent entry into force (see BRIDGES Trade BioRes, 19 November 2004, http://www.ictsd.org/biores/04-11-19/inbrief.htm#2). Despite all the positive momentum, the climate change conference quickly became bogged down in disagreement, with negotiators haggling over the turn of phrase on just how to move beyond the expiry of the Kyoto Protocol in 2012, and on how to treat oil exporting countries that might be adversely affected by climate change mitigation measures taking off around the world. The US and oil exporters such as Saudi Arabia provided fierce resistance to attempts to move the process ahead, and large developing countries with soaring emissions, such as India and China, were explicit about not yet wanting to take on any emissions reduction commitments.
In the end, negotiators agreed to hold a seminar in June 2005 to exchange information on possible future climate change measures, rather than start an actual negotiating process. The COP also adopted the "Buenos Aires Programme of Work on Adaptation and Response Measures," under which a number of workshops and papers will be prepared on these issues and support will be provided for mainstreaming adaptation into sustainable development planning in developing countries. Certain issues were left unresolved; these included issues related to the adverse effects of policies and measures under the Kyoto Protocol. Such adverse impacts would mainly be felt by oil exporting countries.
The next meeting of the UNFCCC subsidiary bodies will be held in Bonn in June 2005.
For a longer report on the meeting, see BRIDGES Trade BioRes, 20 December 2004, http://www.ictsd.org/biores/04-12-20/story1.htm
ICTSD reporting; "U.S. Waters Down Global Commitment to Curb Greenhouse Gases," NY TIMES, 19 December 2004; "Buenos Aires conference advances Efforts to adapt to climate change and meet Kyoto targets," UNFCCC RELEASE, 18 December 2004; "Summary Of The Tenth Conference Of The Parties To The UN Framework Convention On Climate Change," EARTH NEGOTIATIONS BULLETIN, 20 December 2004.
TEXTILES AND CLOTHING QUOTAS SET TO EXPIRE
As the 1 January 2005 date for the elimination of all textile and clothing quotas approaches, key players in the global industry have been posturing about their efforts to deal with the new trading environment.
Long Yong-tu, China’s chief negotiator during WTO accession talks, told a recent conference on the quota phase-out that the textile export duties recently announced by the Chinese government can be expected to be between two and four percent, and will be levied on clothing categories in which export surges — and safeguard actions by the US — are expected. (see BRIDGES Weekly, 15 December 2004, http://www.ictsd.org/weekly/04-12-15/story4.htm) Long cautioned that the end of quotas would not lead immediately to unfettered free trade, and that the "psychological impact of [the expiry of the WTO Agreement on Textiles and Clothing] will be greater than the actual impact." The American Manufacturing Trade Action Coalition (AMTAC), a Washington-based textile industry lobby group that has opposed reductions in US textile tariffs, expressed scepticism about the export tax, saying that Chinese prices would nonetheless unfairly undercut those of US products. The US Commerce Department has agreed to consider at least 11 controversial petitions from AMTAC to impose safeguards to block imports of Chinese textile products such as trousers and shirts. The EU, for its part, welcomed China’s decision to impose export duties.
The EU adopted a regulation on 13 December that will eliminate all quantitative restrictions on the import of textile and clothing products from WTO countries. It did leave open the possibility of taking legal steps to block surges of Chinese imports, although said that it would do so "only if strictly necessary." The EU also agreed to eliminate all quotas on imports of Vietnamese garments — despite the fact that Vietnam is not expected to become a WTO Member until late 2005 — in return for Vietnam’s agreement to the extension of some commitments contained in an October Vietnam-EU WTO accession agreement.
ICTSD Reporting; "The EU to lift textiles quotas from 1 January 2005," EU, 13 December 2004; "EU says block Chinese textiles "only if necessary," REUTERS, 13 December 2004; "US skeptical about China’s planned self-imposed textile export duties," XFN-ASIA, 13 December 2004; "Vietnam to Boost EU’s Market Access in Garment Quota Agreement," BLOOMBERG, 13 December 2004; "China’s Textile Duties Seen Totaling 2% To 4%," ASIAN WALL STREET JOURNAL, 20 December 2004; "CITA Determination…," US INTERNATIONAL TRADE ADMINISTRATION PRESS RELEASES, November - December 2004; "Six types of textile exports face duties," XINHUANET, 21 December 2004.