News Releases

Peter Mandelson

No. 61/05
June 10, 2005

 EU AND CHINA AGREE NEGOTIATED LIMITS FOR TEXTILE IMPORTS

The EU and China have agreed a deal that will manage the growth of Chinese textile imports to the EU until the end of 2008. The agreement provides for reasonable growth in Chinese textile exports to the EU during 2005-2007, while giving time to adjust for the textile industry in the EU. With this wide and balanced agreement, the EU and China ensure a period of adjustment for EU producers, provide greater predictability for importers and retailers and preserve the prize of market liberalization and WTO membership for China.

EU Trade Commissioner Peter Mandelson said: "I have always called for this issue to be resolved amicably rather than through the EU taking unilateral measures, even though we are legally entitled to do so under China's WTO Accession Protocol. My preference has always been to seek an agreement with China that reflects our strategic partnership and our mutual interest in strengthening our trade relations. Today's agreement will give players on both sides clarity, certainty and predictability. I believe that the overall settlement offers a fair deal for China while giving respite and much needed breathing space to textiles industries in Europe and developing countries."

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