EU: No trade war with China over textiles (Agencies) Updated: 2005-05-05 21:19
PARIS - The European Union's top trade negotiator has dismissed the
possibility of a trade war with China over surging Chinese textile imports and
rejected "precipitate" EU action against Beijing.
"There is no question of any diplomatic break or any sort of trade war
between Europe and China," EU Trade Commissioner Peter Mandelson said here
Thursday after a meeting with Chinese Trade Minister Bo Xilai.
EU Trade Commissioner Peter Mandelson (L)
shakes hands with Chinese Trade Minister Bo Xilai after a meeting in Paris
focused on the sharp rise in Chinese textile exports to Europe May 5,
2005. Mandelson has dismissed the possibility of a trade war with China
over surging Chinese textile imports and rejected 'precipitate' EU action
against Beijing. [AFP] | "Both of us know there's much more at stake in the long term for trading and
economic relations for Europe and China to allow the issue of textiles to
undermine that strategic partnership."
The EU executive commission last week launched an investigation into recent
sharp increases in Chinese imports into EU countries that followed the abolition
of a global quota system on January 1.
The procedure, under World Trade Organization regulations, could lead to the
imposition of temporary curbs on nine categories of Chinese textile imports.
Bo stressed that China had been "very prudent" in managing the flow of
EU-bound textile products and had adopted 10 measures that had already led to a
"considerable" slowdown in the growth of such exports to Europe in March.
"We only hope to see a stable increase," he said.
Mandelson acknowledged that China had taken steps to check the export flow
but added: "They have not had the impact that I would have liked to have seen."
Four EU textile producers -- France, Italy, Spain and Greece -- have asked
the European Commission to apply emergency procedures that could speed up the
application of limits.
Mandelson said that such special measures would be considered if it is
determined that any of the nine categories of clothing imports under
investigation required "more pressing or critical" action.
But he insisted that the commission would not be pressured into acting
hastily and said the probe would stick closely to WTO rules.
"I'm not going to take any action that is precipitate, that is reactionary,
that is going to turn the clock back on textile imports," Mandelson said.
"I'm not going to depart either from the rules or the facts. ... We're
talking about managing the growth (of imports) in the short term," he said.
Bo and other observers to the dispute, notably former EU trade commissioner
Pascal Lamy, have attributed the import surge to inaction by the EU textile
industry, which had 10 years to prepare itself for the end of the quota system
last January.
Mandelson rejected that argument, telling reporters "the overwhelming bulk of
European industry prepared for this -- has restructured, has re-adjusted.
"But it may be that a further temporary period, a breathing space (is needed)
for industry to restructure further."
Mandelson said a team from the European Commission would travel to Beijing in
the next week for further talks at technical level.
In addition, French Industry Minister Patrick Devedjian is to go to China in
the next two weeks to discuss the textile issue.
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