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China, EU trying to resolve textile crisis
Author:
admin
PublishDate:
2005-08-26 10:14:00
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428


China and the European Union (EU) will start negotiations in Beijing tomorrow to resolve the ongoing textile crisis, according to a senior official of China's Ministry of Commerce.

"A major issue is to find a solution for Chinese textile products detained at EU ports," Lu Jianhua, Director of the Foreign Trade Department of the ministry, said yesterday.

According to statistics published on Monday by EU Customs, Chinese T-shirts, bras and flax yarn have hit the ceiling of quotas set for this year following sweaters, trousers and blouses. The quotas for bed-sheets and one-piece dresses are also expected to be exhausted in a few days.

Shiploads of Chinese textile products are piled up at EU borders because they have not been allowed entry to the market.

Lu explained that the first task before the two sides was to ascertain the quantity of textiles and garments blocked by EU Customs; and any progress would depend on the figures.

One solution might be for the EU to allow the products to enter its markets using quotas from next year, said a source from the China Chamber of Commerce for Import and Export of Textiles.

However, he added, that might affect next year's exports in case the figure is large.

The textile crisis is partially a result of enterprises' "bad practices during a vacuum period" before the agreement on quotas was reached.

Meanwhile, the EU is facing increasing pressure from domestic retailers and importers for relaxation of quantitative restrictions on Chinese textiles since dealers are experiencing a shortage of competitively-priced products.

The trade ministers of the Netherlands, Germany and Sweden said in a recent statement that the best solution to the crisis is to "renounce protective trade measures."

A European Commission spokeswoman told local media that EU executives would meet representatives from all 25 member states in Brussels to address the issue.



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