BIZCHINA / Light Industry
WTO Commitments
Updated: 2006-04-18 14:59
6. Protecting intellectual property
The exterior design of textile products mainly consists of the fabric
pattern and the pattern and design of the garment style. This is a
special type of intangible asset. The designer or owner will have
independent rights to the design. The designs of WTO members will be
protected as practical art works according to China's "Regulations on
Implementing International Agreements." China has promised to devise
special laws to protect textile product design.
7. Complying with TRIMs Agreement of the WTO
Currently, projects involving a capacity increase in cotton textiles,
chemical fiber and wool textiles are checked and approved by relative
government departments. Regarding chemical fibers, there are still
restrictions on the proportion of shares held by foreign investors. For
instance, no solely owned, foreign-invested enterprise in ammonia
fabrics, polyester and acrylic is allowed. After the WTO entry, we should
follow "TRIMs."
Under general circumstances the restrictions on geographical areas,
quantity, proportion of shares for foreign-invested enterprises and other
restrictions on investment should be relaxed. In the current clearing
campaign of the administrative approval procedures, the procedure for
approving chemical fiber and wool textile capacity will be abolished and
the "two certificates" management system for cotton production capacity
will be retained.
8. Agreement on special-protection measures
Should a WTO member country believe textile garment imports from China
have harmed its enterprises, before January 1, 2009, via discussions,
China will control the exports quantity of one or more types of textiles
and garments "at a level no higher than 107.5 percent of the exports
quantity to the member country in the first 12 months before the most
recent discussions (wool products are 106 percent)." On one hand, this
will enable the importing countries to adopt optional protection methods
against Chinese products and, on the other hand, it will enable countries
that did not implement restrictions on Chinese products to restrict
Chinese exports.
9. Other methods kept by WTO members
Argentina abolished quota (bilateral) restrictions on textiles and
garments before July 31, 2002 and will cut the excessive tariff every
year. Although Hungary has proposed to restrict imports of textile
products from China, it will open its market phase by phase. Mexico can
use anti-dumping measures against textile and garment imports from China
and is not bound by the relative WTO anti-dumping agreement and the
documents relating to China's WTO entry. These countries promised to
abolish regulations that do not comply with WTO regulations against China
three to six years after China's entry into the WTO.
[Source: China Textile Industry Council]
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