The European Union now looks certain to take protective measures against textile imports from China.
EU trade chief Peter Mandelson said yesterday (Apr. 24) that he would launch a formal investigation, which should take at most 60 days, and that, if necessary, the EU will impose limits on Chinese textile imports shortly after that.
"If justified by the facts I will use the safeguards," he said, adding, "I urge China to take a fresh look at the measures they have put in place already, and explore whether they cannot do more."
Mr Mandelson reached his decision after a thorough analysis of statistics on imports of textiles and clothing from China during the first quarter of this year.
Nine types of textiles, were cited by Mr. Mandelson, in which the surge in imports is of enough concern to justify looking at the option of imposing limits. Import types under scrutiny include T-shirts, pullovers, mens trousers, blouses, stockings and socks, as well as womens coats, bras and flax yarn.
Beijing has warned relations with the EU could suffer if Brussels goes ahead with limits, while the EU's textile trade has been lobbying hard for immediate action. Whilst Europe's industry has welcomed the EC's action as being a "step in the right direction", many want Mr. Mandelson to go further and faster.
In addition, fearful of the impact that the Chinese surge will have on its own trade with the EU, Turkish textile and clothing producers have also asked the EC to act quickly to set limits on Chinese textile imports. Turkey is the second biggest textile supplier to the European Union, after China.
Mr Mandelson commented that imports of textiles had increased by up to 534% in some cases in the first three months of this year, against a guideline increase of a maximum 100%.
He insisted that any EU action would be "proportionate".
"Chinese exports should of course be allowed to grow at a normal speed following the removal of quotas, but we must also extend protection to European industry as it is faced with a ruinous surge of unprecedented proportion," he said. "Europe cannot stand by and watch its industry disappear."
China's textile exports are expected to exceed US$100 billion in 2005, according to a new white paper prepared by the China Chamber of Commerce.
