By Henrietta Billings - 17th August 2005
Four European governments have called on Brussels to lift curbs on Chinese textile exports amid fears that they may hit EU retailers and trigger bankruptcies and huge financial losses.
Writing in the Financial Times on Thursday, the ministers called on the European Commission to re-think the limits on Chinese export quotas as many companies in the 25 member bloc are heavily involved in the production of goods they import.
"Scores of European trading companies are facing bankruptcy or severe financial losses. Many jobs are likely to be lost," the ministers wrote. "Trying to stop imports and outsourcing amounts to economic suicide."
The article was written by Karien van Gennip, Dutch trade minister, Bendt Bendtsen, Denmark's economics minister, Thomas Ostros, Sweden's industry minister and Paula Lehtomaki, Finand’s foreign trade minister.
EU trade chief Peter Mandelson reached a deal with Beijing on June 10 regulating textile and clothing imports in ten product categories to 12.5 per cent until 2007.
But the curbs have already been exceeded in the sweater and trouser market and earlier this month Mandelson warned that further shipments will be blocked at ports until a solution can be reached.
The ministers insist that the EU's policy of trade protectionism will not save European textile jobs.
"We do not believe the reintroduction of import quotas for certain textile and clothing products from China is going to save Europe's remaining textile industry," they said in the article.
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