EU-China Textile Deal To Go Before Member States

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

06 September 2005

A deal which would see Chinese textile imports currently awaiting delivery to the European Union allowed into the EU under next year's quotas may have been hamstrung by the objections of a number of member states.

The imposition earlier this year of import restrictions to prevent the flooding of EU markets with cheap Chinese clothing has resulted in quota limits on certain types of textile being reached far ahead of time, stranding shipments of clothes which have been paid for by European retailers outside of EU borders.

Trade Commissioner, Peter Mandelson had reached a deal with the Chinese authorities which would have allowed the blocked goods to be released, with 50% representing an increase in this year's quotas, and 50% being counted against 2006 quotas.

However, according to reports in the international media, the deal may be stalled by France, Spain, Italy, Portugal, Greece and Poland, which have accused the European Commission of attempting to force an agreement through at the last minute.

Meanwhile, following the failure by US and Chinese negotiators to reach an agreement in a parallel row over textile imports, the Bush administration announced recently that it has put new curbs on the importation of certain types of clothes in place.

Although it was agreed that further talks on the matter will take place at an unspecified date in the future, the US authorities last week announced their decision to impose limits on imports of bras and synthetic fabric, adding to limits on cotton trousers, certain types of underwear and knitted shirts that were already in place.

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