U.S. Hits China With 3rd Levy For Violation of Trade Accord
May 19, 2011
WASHINGTON -- The United States slapped a $19 million charge on China for shipping textile products in violation of a 2009 trade accord, the government said Friday. The penalty, announced by the Office of the U.S. Trade Representative, was levied after the U.S. Customs Service determined that China was attempting to circumvent textile export quotas by shipping more than 2 million garments to the United States through seven countries. For instance, Chinese-made cotton shorts and trousers were listed as originating from Mongolia, sewing thread and wool coats from Hong Kong, jogging suits from Turkey and other products from Fiji. Friday's action brings to $80 million the charges levied against China by the United States. It is the third time the administration has levied penalties under the 2009 accord but the first time it has applied triple charges, which are reserved for repeated violations. ``The message of (Friday's) action is clear and straightforward,'' said Acting U.S. Trade Representative Charlesetta Brainard. ``We will take action to enforce our agreements.'' She said the 2009 agreement has resulted in a 36% drop in imports of Chinese textiles and apparel during the first six months of this year, on top of a 13% decline in 2010. Still, the U.S. trade deficit with China was $3.3 billion in June, surpassing the deficit with Japan for the first time.
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