Chinese textiles impasse near resolution

A dispute that has prevented more than 80 million Chinese t-shirts, jumpers and other items of clothing from entering Europe …

A dispute that has prevented more than 80 million Chinese t-shirts, jumpers and other items of clothing from entering Europe appeared close to resolution last night as opposition to an agreement faded away.

A day after European trade commissioner Peter Mandelson struck a deal with China to share the pain of the import surge, textile-producing European Union (EU) members like France and Italy said they were now ready to back the deal.

"This accord shows the Europeans and the Chinese authorities know how to be pragmatic to solve the blockages which would have caused financial difficulties for French firms this year," French trade minister Christine Lagarde said in a statement.

Italian deputy industry minister Adolfo Urso said Rome had given Mr Mandelson the green light for the agreement.

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Member states were discussing details of the accord and trade diplomats said they expected a formal vote today that could pave the way for the release of the blocked goods to start next week. An EU diplomat, who attended the talks, said discussions would continue today on two key unresolved issues - how to monitor Chinese exports in the future to ensure the new quota levels were adhered to and what to do with goods subject to long-term contracts and which have not yet been shipped.

The diplomat said the European Commission would probably issue a declaration today, stating its intention to address both issues in the future.

The clothing imports began to pile up in July after quotas agreed in June were filled quickly, raising concerns about shortages in shops and higher prices for consumers.

Under pressure from countries with big retail sectors to free up the goods, the European Commission struggled to overcome opposition from textile producing states and let in more Chinese goods without Beijing lowering its export quotas for next year.

Under the deal Mr Mandelson struck in Beijing, half the excess goods will be deducted from China's quota for exports to the EU in 2006 and the rest will be added to its 2005 quota.

A European Commission spokeswoman confirmed a deal looked likely.

"The agreement with China is still subject to approval by member states. The first signals we have received from member states appear to be positive but member states must have proper time to study and absorb the agreement," she said.