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EU takes steps to unblock China textiles
(AP)
Updated: 2005-08-30 07:29

"I do not think that the scare stories about clothing shortages comparable to those experienced in the last World War are remotely justified and I hope such hyperbole can now be put aside," Mandelson said.

Containers lie at the Port of Antwerp in Antwerp, Belgium, August 29, 2005. European Union's trade chief Peter Mandelson said on Monday there was no danger of a shortage of clothes on retailers' shelves, as millions of Chinese sweaters, trousers and bras piled up in ports after exceeding import quotas. [Reuters]

The EU head office does not need to strike a deal with China to release the 75 million tons of Chinese-made garments piled up at European ports but it wants to balance demands between textile-producing nations fearful of cheap Chinese imports and countries favoring more free trade.

EU negotiators in Beijing have been authorized to ask China to bring forward some of the 2006 quota to this year. But Chinese state media has said Beijing might be unwilling to use up next year's allowance early.

EU trade envoys left the Chinese capital on Monday as Beijing-based EU officials kept talking with Chinese negotiators, said Michael Jennings, a spokesman for the EU office in Beijing.

There was no word on progress.

Mandelson said he hoped that the Chinese would accept the "moral and political obligation" to help find a solution to a problem all sides were responsible for.

China's textile shipments have surged since the end of global quotas on Jan. 1, prompting the United States and Europe to seek limits to protect their manufacturers.

Mandelson said it was not surprising that textile imports had overshot agreed quotas.

"The flow of Chinese imports has been in full flood since the beginning of the year which had started the fierce calls for restrictions," he said.

In June, the EU and China struck a trade pact which allows for an "enormous increase" in imports, Mandelson said. The 2004 sweater quota of 40 million jumped to 69 million for the second half of 2005.

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