EU Trade Chief Mandelson favours quota free access for textile products from China
23 May '05
3 min read
European Union Trade Commissioner Peter Mandelson told participants at the third World Economic Forum at the Dead Sea in Jordan that in its current textile dispute with China, the EU does not want to restore import quotas on clothing and textiles that were abolished from the start of this year, but seeks agreement with Beijing on ensuring a slower transition to open markets.
China's surging textile exports since a World Trade Organization agreement ending the old quota system went into force on 1 January have brought strong criticism in the EU and the United States and roused fears in many developing countries, including some of the Barcelona Process states, that their own clothing industries will be undermined. Some North African textile-producing countries have asked Brussels to help them face the problem.
Given China's currency advantage and its low labour costs, said Mandelson, it is clear that in the short term the impact of Chinese exports in the sector is going to be considerable. “The transition has to be managed. We have to make it smooth. It is not a question of restoring quotas….In the short term, we have to take steps, hopefully by negotiation, to ensure that we move more slowly from one period to another. And that's what I am engaged in now.”
Mandelson also told the meeting that he is seeking clearance from the Union's 25 members to start negotiations on liberalizing trade in services with countries along the southern and eastern shoresof the Mediterranean.
marketing@alchempro.com
