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China-EU smoke peace pipe over textile trade dispute

Jun '05
The standoff between China and the EU climaxed to reach for an agreement in solving the vexxed issue of textile trade dispute.

In May, the European Union (EU) announced imposition of safeguard measures on certain Chinese textile imports, on claims of harming the domestic apparel and textiles makers in face of soaring imports after the expiry of the textile global quota on January 1, 2005.

EU Trade Commissioner Peter Mandelson and China's Minister of Commerce Bo Xilai met yesterday in Shanghai where an agreement to create a stable environment for Chinese textile exports to EU was established.

Further, China would help the EU enterprises for next three years to smoothly adjust to the incoming Chinese goods.

This was the conclusion after a ten-hour marathon meeting between the two leaders who had earlier set out with obtuse views over Chinese textile exports.

Answering the media during a break, Minister Bo Xilai said, "Both sides were very frank in the conversation and conferred about technical specifics in settling the dispute."

Mandelson commented that in order that Chinese textiles gain free access of the EU markets in 2008, both the sides agreed to ensure "smooth transition."

Latest statistics reveal China's apparel exports in the first four months this year rose 15.6 percent over the same period last year to US $19.27, significantly lower than the country's 34 percent year-on-year growth in overall foreign trade during the same period, displaying the slow emerging effects of the above measures.

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