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Exporters pin hopes on talks to end dispute

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Seeking recourse from the WTO over the textiles row is seen as a last resort

Despite the mainland's threat to take growing disputes over its textile exports to the World Trade Organisation for resolution, analysts and industry officials yesterday said direct negotiations were still likely.

Mainland garment makers are already making dire predictions for their sector this year because of the trade row, putting pressure on the central government to seek an outcome acceptable to domestic producers.

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Beijing announced on Monday that it would scrap self-imposed export tariffs on 81 textile products after both the European Union and the United States set limits on what they view as surges in imports from China.

The clock started ticking last Friday on a 15-day period after which the EU will enforce curbs limiting imports of mainland T-shirts and flax yarn.

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The US imposed quotas on trousers, underwear, shirts and other products earlier this month. Both the US and EU say their imports of mainland textiles have increased sharply since the scrapping of global quotas on January 1.

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