EU China Textiles row
May 6, 2005
The European Union is investigating a marked increase in Chinese textile and clothing imports since the end of a quota system this January. According to some estimates, cheap clothing from China to Europe has surged by 500 percent
The thirty year-old quota system, which expired this year, set limits on the amount of textiles that could be imported from one country.
EU trade commissioner, Peter Mandelson said the inquiry should take at most 60 days and could result in the introduction of possible safeguard measures.
The move comes after the EU warned China to reduce its clothing exports to Europe or face enforced limits. The United States has also launched a similar investigation.
However the Director-General of the World Trade Organisation, Supachai Panitchpakdi said nations should wait at least a year before taking any protectionist steps.
Anita Purcell reports.