Retailers slam special incentives as bargain for unblocking Chinese textile

07 Sep '05

3 min read

Leading European retailers accused the European Union on Tuesday of granting some textile-producing nations special incentives to win their backing in negotiations with China to unblock piles of garments impounded at Europe's borders.

Leading the charge is Foreign Trade Association, which opined that the European Union had gone back on the agreement to allow into Europe Chinese goods that had already been paid for by retailers.

Foreign Trade Association comprises Adidas AG, Carrefoure, Metro and other retail industry leaders across Europe.

Rather, the EU it appears, has taken in to confidence France and Italy, major textile producing member countries by retaining a hold on importation of such goods.

Trade association's legal counsel categorically stated: "Our members are losing out on this."

Representatives of 25 EU member countries are presently deliberating the unblocking of Chinese textiles that have been affecting the retailers who have been facing stock shortages and financial losses.

Today, EU Parliament is likely to announce the decision taken over the European Union and Chinese accord arrived at in Beijing on Monday.

The European Commission said, however, that early signals had been positive that member countries would agree to the deal. A British official said after the talks broke up late Tuesday that there was "broad support" for the compromise, which would allow goods to start leaving European docks as early as next week.

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