BEIJING, June 11: China has agreed to limit growth in exports of 10 textile and clothing products to the European Union to between eight and 12.5 per cent per year, the Ministry of Commerce said on Saturday. The European Union and China agreed on Friday to curb Chinese textiles exports to Europe until the end of 2008 in a bid to defuse an escalating trade row straining ties between them.

“China and the European Union have agreed that, in the period from 11 June 2005 to the end of 2007 .... (we) will determine China’s amount of exports to Europe by a growth rate of between eight to 12.5 per cent per year,” the ministry said in a statement on its website.

The announcement came after more than 10 hours of negotiations between Chinese Commerce Minister Bo Xilai and EU Trade Commissioner Peter Mandelson in Shanghai.

According to a memorandum, the EU has agreed to stop its investigation into Chinese exports of 10 textile products to Europe, including T-shirts, flax yarn and trousers, the statement said.

“During the negotiations, both sides recognise that the textile trade is an important component in the China-EU bilateral trade relations,” it said.

“On the basis of all-round China-EU strategic partnership and bilateral cooperation, we agreed to abide by the win-win principle and to actively promote the stable and healthy development of the textile trade,” it said.—AFP