EU meet tomorrow to resolve textile trade block issue

29 Aug '05

2 min read

Member states of the European Union will deliberate on proposal for the release of imported Chinese garments clogging European sea ports and customs warehouses, Peter Mandelson, the EU Trade Commissioner said.

Earlier in June, China and the EU had agreed to cap growth in China's textile exports to 7.5 percent a year, till the end of 2008.

About 80 million Chinese pieces of sweaters, trousers and bras are awaiting green signal since June 10, when the textile quotas were imposed on imports from China by the EU exceeding the normal levels.

However, this has led to unprecedented situation driving a wedge between EU textile makers and retailers, who have drawn battle lines over the issue of unrestricted market access for Chinese goods.

Textile producing countries like France, Italy and Spain spearheading the restrictive actions against China, face the ire of retailers from Germany and other member countries who fear rise in apparel and textiles consumer prices due to non availability of goods at their store fronts.

Meanwhile, Mandelson hoped that all parties concerned would cooperate in unblocking the customs stocks of imported Chinese textiles, in an interview with BBC.

China at the other end, is facing equally tough time with the US, as negotiations have entered crucial phase. Outcome is expected at the forthcoming meeting between negotiators.

The agreement, it is hoped will pave way for the summit meet between the Presidents George Bush and Hu Jintao, in September.

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