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August 24, 2005
EU faces discussions with China on textile imports
China and the European Union are scheduled to begin discussions on Chinese textiles, in Beijing on Tuesday. The talks aim to find a solution for Chinese textile products that have been detained at EU ports because EU quota limits have been filled.
EU Trade Commissioner Peter Mandelson said: "We now need a pragmatic solution that deals with the immediate overshoot, and with good will on all sides, we can do this".
Several products have now reached their EU quota limits, including T-shirts, bras, sweaters and men's trousers. This is causing concern among European retailers, that they will be unable to re-stock their shops if the Chinese supplied stock is not released from customs warehouses.
The EU quotas are also causing problems for China's clothing manufacturers. Manufacturers have been switching production from clothing that has reached its quota limits to garments that have not. However, as more products have begun to reach quota limits, Chinese producers have started to lay off staff.
There has been a rapid increase in the amount of clothing China is selling to Europe. In the first half of 2005 it sold $8bn-worth, almost the same amount as in all of 2004.
Although this is damaging European manufacturers, EU negotiators may have to concede some restrictions, perhaps by bringing forward some of next year's quota allowance, in order to address the concerns of European retailers and shoppers.
Posted by at August 24, 2005 07:18 PM
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