By Daisy Ayliffe - 31st August 2005
The EU may not be able to find agreement over the Chinese textile crisis, European Trade Commissioner Peter Mandelson admitted on Thursday.
As attempts to unblock tens of millions of Chinese made garments go into extra time, Mandelson acknowledged splits between clothing producing countries and consumer orientated member states could thwart a deal.
“There is a willingness to try to reach some sort of accommodation, but it may not be possible,” he conceded.
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. It was opposed by Britain, the Netherlands, Denmark, Sweden and Germany.
Administrative delays saw imports pile up in EU customs warehouses as quotas filled with orders placed before ceilings were in place and the resulting textile crisis has threatened to hit retailers and empty shops.
The EU executive insists it is still confident that a balance can be struck allowing textiles to leave customs warehouses for the shops without damaging European industry further.
“I maintain my insistence that good held at the border must be unblocked,” Mandelson declared on Thursday.
But he stressed agreement would require “good will” from the Chinese and acknowledged it was unlikely Beijing would agree to transfer some of next year’s quota into 2005.
“I don’t think the Chinese are falling over themselves to do that. But there is more discussion to be had and I hope the Chinese authorities will see the value of reaching an accommodation over these teething problems,” Mandelson admitted.
As EU officials continued detailed negotiations on Thursday, a vote on the issue by member states was postponed until Friday.
Discussions with China will then continue as Mandelson travels to Beijing with Tony Blair on Sunday, where a summit on EU-China relations is likely to be dominated by the ‘bra wars’ row.
As the crisis becomes steadily more protracted, Mandelson attempted to put a time limit on his ambitions.
“It is still my target to get goods unblocked by mid-September. Some may see consider this to be ambitious, but I shall do my best to see that it is done,” he said.
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