Global trade in textiles and clothing will become fully liberalised from 2005 when a special system of import quotas is scheduled to end. The big winner is expected to be China -- while EU producers fear a flood of cheap imports.

Asked about the prospect of Europe abandoning cut-levy textile tariffs for India and China, EU Trade Commissioner Pascal Lamy said: "Yes, we are considering it."

With the end of quotas that guarantee EU access for exporter countries regardless of their size, competitive producers like India and China are expected to gain market share.

At present, China and India benefit from a 20 percent discount in EU import duties. The idea of abolishing this preference was also suggested by a special EU group created to investigate the future of the textile industry.

"(It suggests we should) concentrate the benefit of trade preferences for developing countries on the poorest who ... may have problems with the end of the quota system," Lamy said.

The European Commission, which negotiates trade policy on behalf of the 25-nation bloc, is due to present a proposal in July on revising the reduced import duties that the EU offers to developing countries. Textiles will be part of this review.