China and the European Union (EU) reached a deal on Monday to release millions of Chinese garments blocked by EU customs officers because they exceed import ceilings, clearing up a mess that was souring two-way ties.The search for a solution to release the 88 million sweaters, T-shirts, bras and other items, had split the 25-member EU, embarrassed the EU’s Executive Commission and distracted diplomats from a China-EU summit taking place in Beijing. “I would like to confirm that Chinese and European negotiators have managed to reach an agreement on the textiles that were stopped in customs,” EU Commission Spokeswoman Francoise Le Bail told reporters in Brussels.An EU official in Beijing had disclosed the deal earlier in the day under the condition of anonymity.Le Bail described the deal as “equitable” and said both sides will share the burden of the extra imports this year.Officials said this will mean Beijing agreeing to count roughly half of the blocked goods as part of its 2006 EU export quota.“I can assure you the result is fair and equitable,” Chinese Premier Wen Jiabao said of the pact. “It is acceptable to both sides and conducive to both the business communities and the consumers,” he told a news conference after the summit. Using similar language, European Commission President Jose Manuel Barroso called the agreement “an amicable way to share the burden.” European Trade Commissioner Peter Mandelson, who is in Beijing for the summit, and Chinese Commerce Minister Bo Xilai were expected to formally announce the agreement. At stake in the marathon negotiations was how the two sides would revise a June 10 pact that allowed growth between 8 and 12.5 per cent a year in ten categories of Chinese textiles exports to the EU during the period 2005-2007. — Reuters
