EU members asked to approve China deal

Published September 7, 2005

BRUSSELS, Sept 6: The European Commission said on Tuesday it expected EU member states to approve a deal with China by early next week to resolve an embarrassing row that has left millions of clothes blocked at European ports.

But even amid sighs of relief in Brussels at the deal, key industry officials warned that the chaos could reoccur and pointed the finger of blame firmly at the commission, the European Union’s executive arm.

The textiles agreement, struck in Beijing on Monday by EU trade commissioner Peter Mandelson, must be approved by the governments of the European Union’s 25 member states to come into force.

“The first signals that we have received from member states appear to be positive,” said EU commission spokeswoman Pia Ahrenkilde.

“But the member states must have proper time to study and absorb the agreement ... We expect to be able to complete the procedure quickly, early next week so we can put it into effect,” she added.

Millions of Chinese items, including sweaters (pullovers), trousers, blouses, T-shirts, bras and tonnes of flax yarn, are impounded at European ports because they exceed import quotas agreed by both sides in June.

As well as straining relations, the dispute has led to warnings that a shortage of the goods could cause prices to rise and hit European importers and retailers.

The question of how to deal with the logjam divided EU member states, roughly between southern European countries whose manufacturers fear the flood of cheap imports and northern countries where retailers want fresh stocks.

About five EU states, including Italy, Spain and Portugal, have baulked at allowing the products into the bloc.

Under the deal struck in Beijing between Mandelson and Chinese Commerce Minister Bo Xilai, the EU and China will share the quota burden caused by the stockpiles.

About half of the estimated 80 million textile products being held up will enter the EU outside the quotas, while the other half will be added to China’s 2006 textile limit.—AFP

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