EU to mull response to China textile surge
AFP, Brussels
The European Commission will next week discuss possible action to safeguard European makers of clothes and related products from a surge in cheap textiles from China, an official said Friday. The European Union (EU)'s executive arm will broach the issue -- triggered by the end of a textile quota system at the start of January -- at its weekly meeting on Wednesday. Specifically Brussels will study proposals by EU trade commissioner Peter Mandelson in response to the flood of Chinese textiles, said spokeswoman Pia Ahrenkilde Hansen. Mandelson, while ruling out a return to the old quota system, has repeatedly warned of possible action, and urged China to make efforts to moderate the surge in exports. He underlined that the EU could limit Chinese imports into EU states if they reached "unacceptable levels," while pledging that any action taken will be in accordance with World Trade Organization (WTO) rules. The European Apparel and Textile Organisation (Euratex) has urged Brussels to take action following what is says is a surge of exports in January and February. China said earlier this week that it was going to impose limits on the growth in exports itself. "We are not trying to aim at increasing the quantity of textile products," said deputy commerce minister Zhang Zhigang, adding that Chinese textile makers would focus on adding value to their output rather than boosting trade volume. According to Chinese statistics, clothing exports grew by 28.1 percent in January and February compared to the first two months of 2004, with an overall value of 9.34 billion dollars. China, the world's largest exporter of clothing with 28 percent of the market, is expected to be the main winner from the end of quotas because it can undercut producers with higher costs in Europe and the United States. The end of quotas enshrined in the 1974 Multifibre Arrangement and later in the World Trade Organization (WTO) Agreement on Textiles and Clothing took effect on January 1.
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