MercoPress. South Atlantic News Agency

China's 2005 wool import quotas.

The Chinese Ministry of Trade recently announced wool import quotas for 2005, which “are similar to those established this year, that is 287,000 tons of greasy wool and 80,000 of tops”, reported Jose Luis Trifoglio, market analyst for the Uruguayan Wool Secretariat, SUL..

However Mr. Trifoglio also warned that China's 2004 import quotas remained uncompleted last August 31. "Regarding greasy and unprocessed wool there still is 28% to be filled and 80% for tops".

Under the Chinese quota system greasy and unprocessed wool pays a 1% tariff, and tops, 3%, "but out of the system lots face a 38% tariff".

Mr. Trifoglio also revealed that as part of China's agreement to access the World Trade Organization, "Beijing authorities accepted import quotas for several agriculture commodities such as greasy and semi processed wool, and also agreed to increase them as the year moves on".

The SUL analyst added that in spite of the fact that WTO rules do not allow a quota system for non farm goods, as part of the deal with China it was agreed that import quotas could be imposed on fertilizers and wool tops.

China then imposed several restrictions to greasy and semi processed wool imported under the quota system and those not included would have to pay prohibitive tariffs.

However China eliminated the split between wool quotas for the domestic market and re- exporting, which has helped encourage home consumption.

China was Uruguay's main purchaser of wool in the 2003/04 clip ending October 31 taking 40,99% of total exports, equivalent to 10,3 million kilos of tops, 1,1 million of washed wool and 1,64 million of greasy wool.

Second was Italy with 19,59% of Uruguay's exports, followed by Germany 15,87%, India 4,61% and United Kingdom 2,64%.

Uruguay's exports in the 2003/04 clip totalled 32,970,653 kilos of wool clean base, of which 84,48% industrialized (27.953.525) mainly tops 23,61 million kilos and blousse 3,415 million kilos.