Death of Textiles?

The reaching of a tentative agreement with China on increases in Chinese clothing and textiles products that will be allowed through 2008, has enabled the Bushies to effectively put most of the remaining US textile workforce on the unemployment lines. The deal may be officially signed as early as next Tuesday. Imports for goods covered by the agreement will increase 8-10 percent in 2006, 13 percent on 2007, and 17 percent in 2008. Looking at the numbers, this means that by 2009 the increase in imports from China will be 45 percent above 2005 levels.

This agreement benefits US textile and apparel companies who had been suffering under the quotas the administration imposed last January. They will now be able to ensure adequate supplies of finished goods and raw textiles from the Chinese. Since they will be getting more and cheaper textile products, the need for workers in the US will diminish more.

Say hello to the bread lines.
posted on The Human Stain