Limits would be effective as soon as 1 July while total textile and apparel shipments would not exceed US$1.7 billion, according to various sources.

Hanoi and Washington apparently found a compromise after a two-week negotiation. A series of 30 quotas would apply on Vietnam's textile and apparel exports to the United States.

Shipments would be limited at the level of about US$1.7 billion after converting quantities into value terms. By comparison, Vietnam's apparel exports to the US were US$895 million in 2002, according to US official data, a boom of 1,768% from the previous year.

Rapidly saturating quotas

According to Vietnamese sources, shipments to the US already reached US$530 million in the first quarter of the current year. According to US official data, apparel imports from Vietnam rose 2,054% in January-February to US$413 million.

If officially confirmed, the level of US$1.7 billion in shipments would rapidly stop imports from Vietnam in the second part of the year.

Quotas are expected rising by 10% each year. They will be removed by the United States on 1 January 2005 if Vietnam joins the WTO before this date, or as soon as accession to the WTO will be effective after this date.

Vietnam initially requested a level of US$2 billion to US$2.5 billion while Washington's offer was limited to between US$900 million and US$1.5 billion.

Thanks to the last-minute rise in US offer, shipments would nearly double in value terms in 2003.

More important, quotas would be set at 7 million dozen in categories 347/348 (cotton trousers and shorts, including jeans) and nearly 14 million dozen in categories 338/339 (cotton knit shirts, including sweatshirts and T-shirts).

US imports in categories 338/339 reached 3.36 million dozen in the first two months of the year (latest available data) while rising to 2.7 million dozen in categories 347/348.

US initial offer was dramatically raised

The four categories are the most important ones for US apparel importers, desperately seeking low-cost production and available quotas in Asia.

Figures were released by various sources but no official statement was published until now.
If US importers are expected denouncing the levels imposed by US authorities, textile producers will strongly protest for opposite reasons.

In a letter to president Bush, seven Representatives from textile states urged to not impose quotas at such levels.

According to these legislators, the US initially proposed a level of 4.9 million dozen for cotton knit shirts far from the 14 million dozen finally granted to Vietnam.

Initial proposal for cotton trousers was limited to 2.9 million dozen before surging to 7 million dozen.