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European retailers criticize Chinese textile quotas

Barred Chinese clothing shipments are piling up at European ports, prompting warnings of retail stock shortages and higher store prices just weeks after the EU moved to stem an import surge deemed a threat to jobs.

Amid concern that the European import quotas are doing more economic harm than good, Brussels is facing growing calls for their relaxation, even from France -- one of the strongest supporters of the original textiles clampdown.

Unless the Chinese quotas are loosened, retailers are warning, consumers could end up paying more this autumn for clothes hastily sourced from elsewhere -- as well as enjoying less choice.

The problems in Europe come as Washington is nearing a deal with Beijing on its own temporary import limits aimed at protecting US jobs in the sector. China's textile exports have risen sharply since permanent quotas were abolished on Jan. 1 -- three years after it joined the WTO.

The EU halted Chinese imports of sweaters in July and men's trousers earlier this month after imports met the annual quotas agreed with Beijing in a June 10 deal.

Since then, shipments have been stopped and held at ports of entry, although EU officials say they have not yet been able to determine the size of the stockpiles.

Imports of blouses were also stopped on Friday, the European Commission said, with T-shirts, bras and linen cloth expected to follow within days.

The commission, which drafted the new quotas agreed with the Chinese in June, said it had not anticipated the glut of imports.

"We knew the quotas would fill up one day, but we didn't expect it to happen so quickly," said Rupert Krietemeyer, a spokesman for the EU executive.

Earlier this month, Trade Commissioner Peter Mandelson won backing from EU states to increase the 2005 quotas for pullovers as stranded shipments mounted, and Krietemeyer said possible quota relaxation for other garments would be discussed at a meeting of trade officials next week.

But importers also bear some responsibility for the chaos, he added.

"The retailers knew about the quotas but ... they continued to order articles from China without any licenses," Krietemeyer said.

The CNSH French clothing retailers' association -- which represents retailers including Etam and Kookai -- blamed the EU for the disruption.

Retailers had built the long-agreed liberalization of Chinese textile imports into their sourcing plans, CNSH Executive President Jean-Marc Genis said.

"Companies went to China to buy more goods, then all the rules changed. The orders had been placed and paid for last year," he said.

Some retailers say they managed to anticipate the new temporary quotas and source elsewhere, but others claim the hitch could leave damaging holes in planned autumn and winter lines.
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