EC To Investigate Chinese Textile Exports

by Ulrika Lomas, for LawAndTax-News.com, Brussels

26 April 2005

Following up on remarks made earlier this year with regard to Chinese textile imports to the European Union after the January 1 introduction of free trade in this area, EU Trade Commissioner, Peter Mandelson has revealed that an investigation has been launched which may lead to the imposition of import limits.

In March, Mr Mandelson warned that: "If there is a perception of a lack of equilibrium in China's trading practice, a negative reaction will be inevitable."

Speaking at an informal meeting of EU trade ministers at the weekend, the Trade Commissioner revealed that the EC is moving forward with the matter, in order to address the concerns of clothing manufacturers and textile firms adversely affected by increasing Chinese textile exports since the start of the year.

The investigation being launched into possible safeguard measures is expected to take around sixty days to complete. However, Mr Mandelson expressed hope that a deal could be reached with the Chinese authorities to prevent the imposition of sanctions or limits.

"Chinese exports should of course be allowed to grow at a normal speed following the removal of quotas," he reportedly told the EU ministers, continuing: "But we must also extend protection to the European industry as it is faced with a ruinous surge of unprecedented proportion."

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