By Bruno Waterfield - 24th May 2005
Brussels and Beijing have until next Tuesday to make a breakthrough in crisis textile talks, the European Commission said on Wednesday.
The extended deadline expires on May 31, conveniently after a French referendum on the EU constitution following strong Paris pressure to cut textile imports from China.
The Brussels executive has given EU trade commissioner Peter Mandelson a “green light” to take formal action against a surge in Chinese textile imports.
But in the meantime negotiations between Mandelson and China's textile negotiator Gao Hucheng have six days to run.
“We think the atmosphere has been quite constructive… as to what will happen next we are flexible. We are prepared to discuss, discussions will be ongoing,” said a commission spokeswoman.
If textiles talks fail by Tuesday the commission will demand formal consultations with China over t-shirt and flax yarn imports into the EU.
That move will trigger EU import measures under WTO rules unless China takes action to curb soaring exports.
“Everything is in place whatever happens. Obviously we would like to find agreement,” said the spokeswoman.
By extending an expected May 25 deadline to May 31, the commission is not ruling out hopes that agreement can be found as EU and Chinese officials continue high-level negotiations.
“We have decided to give time for these talks. This [a deal] is a possibility that we do not exclude.”
Beijing has already pledged to increase export tariffs on 74 lines of clothing and textile products.
But on Monday China ruled out new measures imposing tariffs on EU bound textile exports.
“The Chinese government is not thinking about any fresh measures to control textile exports," Beijing's Vice Finance Minister Lou Jiwei told Reuters.
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