BRUSSELS, May 27: The European Union’s executive commission said on Friday it has made a request for formal talks with Beijing over two types of textile imports from China, bringing the EU a step closer to imposing limits.
“Following approval by the Commission of (EU trade commissioner) Peter Mandelson’s proposal, the European Commission has asked the Chinese authorities for formal consultations on two categories of textiles and clothing products — flax yarn and T-shirts,” a commission spokeswoman said in a statement.
Under World Trade Organization (WTO) rules, China must take steps to limit the export of the two types of clothing to “a level no greater than 7.5 per cent above the amount that entered the EU market during the period from March 2004 to February 2005.”
Beijing has 15 days to take the measures failing which Brussels is entitled to slap its own limits on Chinese textiles. “However, a mutually satisfactory agreement between the EU and China could also be concluded through negotiation during this period,” the commission statement said.
The EU and China have already been in close, high-level contact recently to try to find a solution. Until now China has only offered to place export tariffs on 74 categories of textile products, but the commission, along with many EU member states and textile companies, considers the measures insufficient.
Textile producers in the developed and developing world have been struggling with a flood of cheap exports from China since the end of the 31-year-old global textile quota.
Veron-Reville said that Beijing “perfectly understands” that the request for formal talks did not “preclude or displace” the talks already underway.
“Today’s request is made after a thorough and fruitful telephone discussion today between Peter Mandelson and Chinese Commerce Minister Bo Xilai. —AFP
