Minister for Enterprise, Micheál Martin, signalled his opposition to EU import quotas on textiles yesterday and warned of an upsurge in protectionism.

He also predicted that there should be no shortage of clothing in Irish shops in the run-up to the Christmas sales season this year.

In his first comment on the current impasse between the EU and China over quotas on a range of clothing and textiles, Mr Martin said the Republic favoured a more liberal view of competition.

"We have to be careful not to be too interventionist in trade," he said. "And I would be concerned about certain protectionist elements increasing."

Mr Martin said the Republic was on the liberal side of the current argument among EU states about whether to retain the current import quota scheme on textiles manufactured in China.

A new quota system intended to limit the volume of Chinese textile imports to Europe was agreed in June between China and the EU trade commissioner, Peter Mandelson. The system will limit imports over the next three years in 10 clothing categories, including bras and jumpers.

However, the system is already in danger of falling apart after tens of millions of Chinese-made goods have been stockpiled at European and Chinese ports. A succession of European retailers have also warned that they may not be able to meet demand for certain goods for Christmas unless the quotas are eased soon.

Mr Martin acknowledged that there were significantly divergent views held by different members of the European Commission. But he said he thought a solution would be found shortly to the impasse because of the immediate need to free up the stockpiles of goods.

The EU member states remain divided over whether to block additional textile imports from China, with many northern European countries favouring liberalising the regime to aid retailers.

However, some southern and Eastern European states favour maintaining quotas to protect their clothing manufacturers.

Mr Martin said the EU had to be careful in intervening and it was his experience from meeting textile producers in Donegal that many had already outsourced their manufacturing abroad.

Meanwhile, at a meeting in Brussels yesterday Mr Mandelson said he was still hoping that tens of millions of Chinese clothing imports stuck at the European Union's borders can be released by the middle of September.