Europe and China looked likely to take trade talks through the weekend as negotiators continued late yesterday to try and resolve a dispute that has left millions of items of Chinese-made clothes blocked at European ports as retailers threatened to sue the EU over losses.
An EU official described yesterday's meeting as "constructive and frank" amid indications that negotiations could continue throughout the weekend.
"Talks have started , but as of now we have no information other than they are being held in a constructive and frank way," the official told reporters.
"Finding a solution to huge amounts of blocked goods in European ports is an important issue that needs to be resolved as quickly as possible," the official said.
China's commerce ministry further announced a fourth round of textile talks here next week with the US, which is pushing to limit Chinese imports to protect its own industry.
The talks are being held just two months after the EU and China signed a quota deal capping annual import growth rates on 10 Chinese textile products and averting a costly trade war.
Chinese exports, surging since a global system on textile quotas was abolished at the beginning of the year, have already reached the annual limits in seven of the categories and European customs officials have refused to accept any more of these items.
The impasse has driven a rift between EU states hoping to protect their domestic textile manufacturers from cheap imports and the wealthier states that see the Chinese goods as bargains for consumers.
Any agreed change to the June quotas between negotiators would further have to be approved by the 25-member EU, European officials said.
European retailers, who have paid for the goods and face additional storage and shipping fees, are blaming the EU trade commission for botching the earlier textile talks, blocking the goods and failing to foresee the impasse developing.
An association of German retailers warned Friday that it might demand monetary compensation from the EU if the blocked Chinese garments were not released.
"If the problem is not resolved by the end of next week, and if the merchandise has not left the warehouses, we will act," declared Rolf Pangels, head of the BAG federation, which represents large and medium-sized retailers.
Some 75 million items of Chinese-made clothing are being stockpiled in European ports, including sweaters, trousers, blouses, T-shirts, bras and tons of flax yarn.
BAG head Pangels said the federation could seek damage compensation and interest on behalf of textile importers, adding that BAG was "confident of the chances of success for such a complaint."
"If we let things continue the way they are much longer, we will reach a point where German consumers are made to freeze this winter because sweaters are rotting in the warehouses," Pangels warned.
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