EU to China: Cut textiles exports or face curbs

The European Union (EU) urged China on Sunday to cut its textile exports or face formal curbs on products such as T-shirts and trousers, whi...

The European Union (EU) urged China on Sunday to cut its textile exports or face formal curbs on products such as T-shirts and trousers, which have leapt in some cases by more than 500 per cent since the end of a global quota system.

‘‘Europe cannot stand by and simply watch these developments unfold. The time has come to take further action,’’ EU Trade Commissioner Peter Mandelson said, announcing plans for a probe into nine categories of Chinese textile and clothing products.

His decision to recommend to the EU executive Commission an investigation into the surge which followed the January 1 winding up of a global quota regime could lead to formal curbs on Chinese shipments by the EU within 150 days.

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But major textile producers including France, Portugal and Italy said his initiative was not enough and they would push for the probe to be expanded to as many as 20 product categories.

China made 17 per cent of the world’s textiles and clothing in 2003, but WTO sees its market share rising to above 50 per cent in three years.

Mandelson said he wanted an investigation into sharp rises in imports from China of T-shirts, pullovers, men’s trousers, blouses, stockings and socks, women’s overcoats, brassieres, flax or ramie yarn and woven fabrics.

Beijing imposed export tariffs on some textile products from January 1 to counter fears that its exports would flood world markets and undermine producers in both poor and rich nations.

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But Mandelson said China should take further steps to avoid the imposition of so-called ‘‘safeguards’’ on its exports. — Reuters