Sino-EU rockhard tensions liquefy at 12.5% of textile sales growth

13 Jun '05

1 min read

The new textile export deal was made out after hours of negotiations between Chinese commerce Minister Bo-Xilai and EU Trade Commissioner Peter Mandelson in Shanghai on Friday.

According to an agreement signed by China and EU, the growth in exports of ten categories of Chinese textiles to the EU markets would be restrained to up to 12.5 percent a year by the end of year 2007.

The export restrictions ranging from 8 percent to 12.5 percent a year, would apply to textiles products that includes T-shirts and flax yarn, the EU stated in a statement guiding about the terms of agreement.

The EU informed that for other categories of textiles, it would exercise control on its right to restrict imports under the terms of China's entry to the WTO, in the year 2008.

The US has already imposed safeguard measures on Chinese textile imports since the flood of Chinese products was unleashed by January 1, 2005, eliminating a decades-old system of quotas.

The new deal would be effective from Saturday and will be calculated on the basis of Chinese textile imports in the first two or three months of 2005, the very first year when Chinese exports were not restricted by quotas.

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