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China and Brazil have held talks over their textile disputes on the sidelines of the World Trade Organization meeting in Hong Kong. The two sides have reached preliminary agreement on this issue, according to a report from the news service AFX. China's Ministry of Commerce has not yet confirmed whether an agreement has been signed.
The development follows a complaint filed by a Brazilian industrial association with a view to initiating safeguard measures against Chinese textiles.
China and Brazil agreed to impose quantity restrictions on polyester thread, synthetic and silk fabric, velvet, waistcoats, pullovers, embroidered fabric and woven shirts that China exports to Brazil. It will affect exports over the next three years.
If an agreement is signed, it will be China's third export quantity control deal after ones signed with the European Union and the United States.
If it is true, the agreement will be the first textile agreement China has signed with a developing country. It is not known whether other developing countries that have textile disputes with China, such as Cambodia and Turkey, will follow suit.
Source: China Daily
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