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EU Trade Commissioner Peter Mandelson (L) and China's Commerce Minister Bo Xilai pause during their joint press conference, after signing a China-EU textile agreement in Beijing September 5, 2005. [Reuters]

China and the European Union (EU) reached an agreement yesterday evening to resolve the stockpiles of Chinese textile products held at EU borders.

The agreement, signed by Minister of Commerce Bo Xilai and EU Trade Commissioner Peter Mandelson, will allow some 77 million textile products, including sweaters, trousers, T-shirts and bras, to enter the European market.

The deal is "fair and rational from the perspective of both key principles and minor details," Bo said.

"Sino-EU economic and trade relations are full of vigour and mutually needed, and we can achieve win-win results through exchanges and co-operation," he said.

"It is 50 to 50," Mandelson said, explaining that half of the garments would be allowed in outside quota rules on the EU's account, and half would be counted against limits for this year and next year, effectively reigning in Chinese export growth.

However, the two trade chiefs declined to elaborate on details.

This round of minister-level talks lasted about 10 hours on Sunday till 3 am on Monday morning, and restarted at 8 am yesterday.

"The deal still needs to be presented to and discussed by the 25 member states of the EU," Mandelson said, adding that further discussions would be held in Europe today.

The agreement, Bo said, did not mean that the bilateral agreement signed between the two sides is unsuccessful. "It is a win-win deal."