European Union to accept more textile imports from China
Beijing (AsiaNews/Agencies) Talks between EU and Chinese trade officials to find a solution to the trade crisis continue. It began when EU introduced quotas to stem the flood of cheap Chinese imports. However, quotas have created shortages in textile products such as sweaters, bras, pants, etc. and the shortfall is such that many retailers are concerned about supplies for the Christmas sale season.
European Union trade commissioner Peter Mandelson said yesterday he would present EU governments with proposals to increase Chinese imports over existing quotas. This would enable both parties to solve the current impasse by mid-September.
Official sources described negotiations in Beijing Saturday's negotiations as "frank", but for the time being they have not yet solved anything.
In June the EU and China agreed on limits to Chinese exports of some textile products. Europeans were concerned that unhindered Chinese imports would wipe out European manufacturesin 2004 alone some 165,000 garment industry jobs were lost in the EU. However, European retailers complain that these limits have created shortages.
For Mandelson, European governments are to blame for the crisis because they continued to issue import licences for Chinese goods for weeks after the June agreement so that annual quotas were met sooner than expected.
He also said Chinese authorities were "slow off the mark in introducing their own exports control system".
The result was that mainland goods already paid for have piled up at bonded warehouses on European borders, leaving retailers warning of empty shelves this autumn and winter.
Around 80 million items59 million sweaters and 17 million pairs of trousersare already detained at European ports.
EU quotas are also beginning to hurt China's clothing manufacturers, who initially responded by switching production from clothing that had met its quota limits, such as trousers and blouses, to garments that had not. However, few of those categories now remain.
In the first half of 2005 China sold US$ 8 billion worth in garments, almost the same amount as in all of 2004.
"In the implementation of this agreement there has been a glitch," Mandelson said. It was not the fault of importers and retailers and he did not believe they should be "unfairly penalised".
He stressed that EU quotas were meant to protect textile importers from poor countries outside Europe (such as Bangladesh, Pakistan, India) from Chinese competition, as well as to shelter European producers, but insisted protection could only be temporary.
"The need is for everyone to adjust to the new market realities, to the reality of China's growth and make sure that we reform economically, invest and adapt so we can take on the challenge of this competition," he stressed. "The protectionist route is simply a cul-de-sac." (PB)
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