Chinese textiles: EU sets warning system

Under pressure to stem arising tide of textile imports from China, the European Union8217;s executive on Wednesday unveiled guidelines for imposing curbs on a country, which already has 20 per cent of a 400 billion market.

The European Commission8217;s 8220;early warning system8221; proposes allowing increases of between 10 and 100 per cent per year in Chinese textiles and clothing 8212; depending on the product 8212; before considering action to limit shipments. The 25-nation bloc8217;s trade chief acknowledged mounting calls from European producers and from the EU8217;s Mediterranean Rim nations, which have traditional clothing industries for 8220;safeguards8221; to be slapped on Chinese imports now.

But he said it was still too soon for such action following the winding-up of a global textile quota regime on Jan. 1.

8220;We only have two full months of data,8221; Trade Commissioner Peter Mandelson told a news conference. 8220;It is too early therefore to judge what sort of difference in trade flows and what likely market disruption is going to arise.8221;

European producers, like many in the United States, fear that imports of cheap Chinese goods 8212; for decades limited by the quota system 8212; are set to flood their markets.

They are pushing the EU8217;s executive Commission to apply the 8220;safeguard8221; restrictions which Beijing agreed to when it joined the WTO in 2001. 8212; Reuters