The EU has assured Chinese textile firms that it will not follow
Turkey's lead in imposing quotas on its textile imports.
Claude Veron-Reville, spokesperson for EU Trade Commissioner
Peter Mandelson, told China Daily that such safeguards
would only be used as a last resort and "would have to be fully
justified."
Turkey decided in December to impose quotas on 42 categories of
Chinese textile imports, just ahead of the lifting of global quotas
on January 1.
China's textile industry grew increasingly concerned that the EU
may take similar measures in response to calls from Europe's
largest textile-industry lobby group, Euratex.
Reports had also indicated that, at a closed-door meeting last
month, EU trade officials and politicians discussed whether
Turkey's action against China should lead the EU to do
likewise.
Veron-Reville said the EU is currently working on guidelines for
safeguards. "We want to get them right, not rushed."
She added, "EU strategy for the textile and clothing sector is
not a protectionist one, but is forward-looking and focuses on our
strengths."
She said the industry there has adapted itself over a 10-year
quota removal transition period and specialized in what it does
best: high-tech fabrics. By exporting such products, Europe has
moved up the value chain.
The WTO Agreement on Textiles and Clothing (ATC), which
established the quota elimination process, ended on?December
31 and trade in textile and clothing products can no longer be
subject to any quantitative restrictions.
Just ahead of this, the European Commission, the EU executive,
proposed seven measures to enhance competitiveness of its textiles
industry.
These were: boosting research and innovation, ensuring lifelong
education and vocational training, structural funding to cover
unforeseen crises, strengthening the fight against counterfeiting
and piracy, improving access to other markets, rapidly completing
the Euro-Mediterranean free trade zone and strengthening
cooperation with China.
The last measure includes the recently established EU-China
textiles dialogue and monitoring of Chinese imports.
There is no going back on the removal of quotas, Veron-Reville
said, and the EU will respect its commitment and the fact that it
is the price for China's accession to the WTO.
"But we want to ensure a smooth transition to a quota-free
regime, in particular for vulnerable countries whose economies are
highly dependent on exports," she said.
She pointed to Bangladesh, whose textiles and cloth represent 85
percent of its exports, as an example.
Eight measures were announced by the Chinese government last
month, including imposing an export tax on textiles and cloth, to
help ensure the industry was able to adapt to its new
environment.
Mandelson had previously said that by accepting dialogue rather
than confrontation, the commission has a greater chance of ensuring
China does not become a threat to the European industry.
Two Textiles Trade Dialogue meetings were held by China and the
EU in May and November last year.
Before January, EU textile imports subject to quotas represented
only 20 percent of total EU textile and clothing products. Twelve
percent of Chinese textile exports to the EU were affected by the
abolished quotas.
China is the EU's leading textile supplier, accounting for 17.5
percent of all textile imports in 2003.
(China Daily February 7, 2005)