The Sino-US textile agreement took effect on January 1, 2006, imposing quotas on a total of 21 types of clothing and textiles from China by 2008.

After seven rounds of talks, the United States and China signed a three-year agreement on textile trade in November, imposing quotas on Chinese textile products but clearing a major obstacle to bilateral trade.

A total of 21 types of clothing and textiles have been placed under the import restrictions, including cotton trousers. The agreement provides for a progressive increase in imports of major textiles and apparel products from China - by 10% to 15% in 2006, 12.5% to 16% in 2007, and 15% to 17% in 2008.

Meanwhile 10 types of Chinese textile and apparel products exported to the European Union have also been put under quota restrictions, according to an agreement reached by the two sides in June 2005.

"The two textile agreements eliminate most uncertainties faced by Chinese clothing enterprises when exporting goods to two of the most important overseas markets," said Mei Xinyu, a research fellow with the Chinese Ministry of Commerce.