BRUSSELS, May 23: The European Union went a step forward on Monday towards imposing limits on some types of surging Chinese textiles after member states voted in favour of opening formal negotiations with Beijing. The EU’s textile committee, which represents the EU’s executive commission and member states, approved a proposal by EU trade commissioner Peter Mandelson to launch formal talks with China on a surge in exports of T-shirts and flax yarn.
“Following the committee’s approval, the decision to launch formal consultation should be taken by the commission on Wednesday,” the commission said in a statement. Speaking to journalists at the European Parliament here, Mandelson said: “I am very glad that what I have proposed and the approach I am taking, this has found broad support among an overwhelming majority of our member states.”
“Some member states expressed concerns and caution,” he nonetheless added.
The 25-nation EU has joined the United States in increasing pressure on China to rein in its exports to protect their own textile industries following the end of international quotas on the trade on January 1.
Mandelson said last week that imports of T-shirts with a ‘Made in China’ label had jumped by more than 160 per cent from a year earlier, while flax-yarn imports had surged more than 50 per cent.
Under WTO rules the formal consultations can last 90 days before the EU can launch safeguard measures. But in the meantime the EU can apply “interim import growth restrictions” if China does not take steps to rein in its exports.
Mandelson is due to meet here with China’s special textiles negotiator Gao Hucheng to discuss the possibility of the EU and China reaching agreement on curbing the rise in Chinese textile exports.
“I want to find a mutually satisfactory agreement with the Chinese authorities, one that meets our purposes but one that doesn’t offend the principles of the WTO or indeed the liberalization in textiles that has taken place,” Mandelson said.—AFP
