Yahoo! News - EU states urge quick response to rise in Chinese textile imports

EU states urge quick response to rise in Chinese textile imports

Sun Apr 24, 5:17 PM ET


LUXEMBOURG (AFP) - A dozen textile-producing European Union member states said the European Commission should quickly adopt countermeasures to rein in a rise in textile imports from China, government officials said.


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There were complaints that the stance adopted by the EU was too conciliatory and some states wanted the list of Chinese-made products under EU investigation to be extended.


The demand was made by Belgium, Cyprus, the Czech Republic, France, Greece, Italy, Lithuania, Poland, Portugal, Slovenia and Spain before an informal dinner here of foreign trade ministers.


Slovakia and Hungary were also thought to back a tough line, diplomats said.


French Foreign Trade Minister Francois Loos said EU trade chief Peter Mandelson's decision to launch an investigation into nine categories of Chinese textile or clothing products was going "in the right direction".


These include T-shirts, pullovers, mens' trousers, blouses, stockings and socks, as well as women's overcoats, bras and flax yarn.


But Loos added that ministers would "ask (Mandelson) to go faster".


"There are two procedures, a rapid one and a slow one. We're asking for a rapid procedure. All textile producers agree," he told journalists.


Spanish Foreign Trade Minister Alfredo Bonet said the number of items listed by the Commission was inadequate and should include other categories.


Portuguese Economy Minister Manoel Pinho agreed; "We have identified over 20 items that should be the object of the (inquiry) procedure."


Mandelson earlier Sunday stepped up pressure on China to curb a "ruinous" surge in textile exports, urging it to take action or face possible EU steps to protect Europe's clothing industry.


He made the call as he gave details of the surge in Chinese imports since the end of a quota system in January, and confirmed plans to investigate specific areas where the European Union might impose import ceilings.


"If justified by the facts I will use the safeguards," he said, referring to measures which allow the 25-member bloc to take action if imports threaten European producers.


"I urge China to take a fresh look at the measures they have put in place already, and explore whether they cannot do more," said Mandelson, who is to travel to Hong Kong on Monday.


Mandelson confirmed he would recommend this week that the European Commission launch formal probes into the surge in textile imports, with a view to possible safeguard measures.


The EU trade commissioner said the investigations should take at most 60 days, saying he hopes to have results by June and that, if necessary, the EU will impose limits on Chinese imports shortly after that.


He was backed by Nicolas Schmit, deputy foreign minister of Luxembourg, which currently holds the EU presidency: "First before you know what you have to do, you have to know what's really happening and I think the commissioner is doing himself that."


Beijing has warned that its ties with the EU could suffer if Brussels goes ahead with limits, while the EU's textile trade, backed by producer countries such as France and Italy, has been lobbying hard for immediate action.

But Swedish State Secretary for Trade Lars-Olof Lindgren cautioned, "Of course, there have to be investigations before decisions are taken. That's the right way to do it.

"But we in Sweden think we should concentrate on getting the European economy and industry competitive instead of trying to protect it; because this is no way of getting Europe to be the most competitive industry in the world."

Mandelson said that imports of textiles had increased by up to 534 percent in some cases in the first three months of this year, against a guideline increase of a maximum 100 percent.





Yahoo! News - EU states urge quick response to rise in Chinese textile imports