EU to act on textile crisis

EU trade officials will step up efforts to resolve a looming Chinese textile imports crisis this week.

National trade delegates are set to meet in Brussels on Thursday and EU officials head to China on Wednesday.

Trousers, jumpers and blouses are piling up in warehouses across Europe after the categories of clothing exceeded EU import quotas set with China in June.

Underwear and t-shirt imports are now set to fill quotas sparking fears among retailers for orders paid for and shipped before the EU restrictions.

As warehouses fill with embargoed products, retailers have warned of shortages hitting the consumer and high street shops.

Dutch, Danish, Swedish and Finnish capitals last week warned Brussels that quotas could be “economic suicide”.

“Events are evolving fast,” said a European Commission spokeswoman. “Other quotas may fill this week but we have to see how the situation evolves.”

The commission’s June deal to agree import quotas with China followed intense pressure from Europe’s struggling textile industry after the lifting of world trade restrictions in January 2005.

One option for EU trade officials is to bring forward elements of next year’s quotas to 2005 to prevent warehouses filling and shops emptying.

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