By Daisy Ayliffe - 29th August 2005
Brussels is ready to take “painful” decisions to free-up Chinese clothing imports blocked by EU textile quotas at Europe’s ports.
European Trade Commissioner Peter Mandelson warned that a June 10 EU-China deal struck could be endangered if the clothes were not released.
The EU executive is concerned that unless growing mountains of textile products are quickly cleared bitter conflicts could erupt between national capitals.
Trade decisions taken at the European level are jealously guarded by EU officials concerned that divisions over textile quotas could prompt unilateral action by members states.
“In these circumstances the solidarity painstakingly built up on the textiles issue amongst member states will erode and their fragile unity will fracture,” he told the European Parliament’s International Trade Committee on Tuesday.
“This is not in the interests of European textile producers. It is not in the interests of maintaining the delicate balance we have created on this matter.”
Textile quotas were introduced after strong pressure from countries like France, Italy, Spain and Portugal in a bid to shield the EU clothing industry from cheap Chinese imports.
But administrative delays saw imports pile up in EU customs warehouses as quotas filled with orders placed before ceilings were in place.
The resulting textile crisis has threatened to hit retailers, empty shops and split clothing producing countries from free trade, consumer orientated member states such as the Netherlands, Denmark, Sweden, the UK and Germany.
Green MEP Caroline Lucas criticised Mandelson for trying to square a circle, by ruling out unregulated free-trade whilst also shying away from protection.
“If he accepts unregulated fair trade causes too much damage then the alternative has to be intervention. This involves the dreaded ‘protection’ word and the trade commissioner cannot bring himself to say that,” Lucas told EUpolitix.com.
In a report to the European Parliament’s International Trade Committee shortly after Mandelson’s announcement, Lucas warned of the “very real competitive threat” posed by China.
“While the EU's policy of setting limits to the growth in imports of certain Chinese textiles may have been implemented badly, the principle of trying to regulate free trade is the right one,” she explained.
The report on the prospect of EU-China trade relations also criticized the commission for trying to find a quick-fix.
“Mandelson’s intervention is temporary. It only lasts three years and it does not address the longer term challenges,” Lucas added.
MEPs unanimously backed six key amendments which Lucas said “kept the spirit” of her report.
“I only hope that we keep this consensus through to Plenary in October. I would like Mandelson to accept that China is a challenge not just for the EU but also the poorer nations.”
“While China's impact on Western textile producers is serious, its impact on countries like Bangladesh, where textiles and clothing account for around 90 per cent of all industrial goods exported, will be hugely damaging,” she told this website.
“It is time to look again at our assumptions on the winners and losers from fair trade.”
Have your say...
Please enter your comments below.