MJIEL Vol 3 Issue 1 2006 - Article 3


The expiration of the WTO Agreement on Textile and Clothing (ATC) and the following quota elimination was one of the most significant events of world trade in 2005. However, within six months after the phasing out of the quotas, both the European Union (EU) and the United States (US) invoked special safeguard provisions in China's WTO accession to re-impose quantitative restrictions on China textile. This Article discusses the likely interpretation of the provisions of the Textile Specific Safeguard Clause (TSS Clause) and the Transitional Product-Specific Safeguard Mechanism (TPSS Mechanism) under multilateral disciplines and analyses the practice of the US and the EU. On the basis of this, it also explores several WTO-consistent options for China to react to those safeguard measures.

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