There has been a slight increase in the weekly growth of US quotas being used by Vietnam in several restricted apparel categories in the past week. By contrast, the fill rate growth in China quotas declined in the week to 18 April. Reports from Beijing confirm that estimates for quota use will fall short of the annual limits in 2006.

The growth rate of US quotas by Vietnam continues to increase in several categories, latest US data confirm.

This has risen to 2.84 per cent in category 347/348 (cotton trousers) in the seven days to 18 April, for example.

Total quota use in some categories is high and especially in swimwear (359-s/659-s) which is fast approaching exhaustion at 74.4 per cent.

Half of the quota allocation in category 342/642 (skirts) has also been used up.

China forecasts unused quotas
Although use is high with Vietnam, products entering the US from China remain at low levels.

There has been a fall in the weekly growth rates of quota use in several categories in the week ending 18 April.

These included 349/649 (bras) which saw weekly growth drop to 0.87 per cent from 1.06 per cent one week earlier.

Total quota use therefore remains low with a handful of categories still below 10 per cent for the year.

Initial reports from Beijing suggest the government has released preliminary estimates of forecast quota use for the year.

China expects to see 20 per cent of annual quotas go unused due to lack of demand and the way in which the quotas have been distributed.

This has left companies with quotas they will not use while others have been hoarding theirs.