The US decided to reinstate quotas on Chinese textiles just one year after removing them.
The quotas will be on cotton pants, cotton shirts and underwear. The US fears that increased levels of Chinese imports negatively impacts our textile industry to the tune of thousands of jobs a year.
This is a tough one for me. I am not a free trade diehard, but I am also not against out-sourcing. I believe that foreign direct investment does much more for underdeveloped countries than foreign aid has ever done. Through out the 90s something like 95% (not completely sure on exact # but got the figure from T. Barnett's book) of the worlds conflicts involved countries with an average income below $3,000 a year. Outsourcing jobs to underdeveloped countries is a quicker way to raise per capita averages. Foreign aid ends up in the hands of crooked leaders not the people.
Tough decision but I think it is for the best, unadulterated free trade cannot be good for us as a nation, minor limitations would help manage our growth more effectively. Quotas need to be placed on China especially while questions linger about the Chinese living up to all of their trade obligations.
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