The EU and China have agreed a deal that will manage the growth of Chinese textile imports to the EU until 2008. The agreement on 10 product categories of concern limits the rate of imports while allowing fair and reasonable growth for Chinese exports. By finding a wide and balanced agreement, the EU and China ensure a period of adjustment textile industries in the EU and developing countries.
The European Commission and the Ministry of Commerce of the People’s Republic of China held consultations on the export of certain Chinese textile and clothing products to the European Union until the end of the year 2008 in Shanghai, China on June 10, 2005.
It was agreed that Chinese textile exports to the EU in 10 categories of concern will be limited to agreed growth levels until the end of 2007. This agreement will cover 10 of the 35 categories of Chinese imports liberalised on January 1, 2005: pullovers, men’s trousers, blouses, t-shirts, dresses, bras, flax yarn, cotton fabrics, bed linen, and table and kitchen linen. It covers the categories of serious concern, including most of the categories identified by the European Textile Association Euratex and the two categories for which the EU had already launched formal WTO consultations with the Chinese: t-shirts and flax yarn.
The EU agrees to end the ongoing investigations concerning these product categories. The agreement limits growth in imports in the 10 categories to between 8 and 12.5% per year for 2005, 2006 and 2007.
