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EU mulls guidelines on textile imports

A woman arranges clothing at a knitwear factory in Hangzhou, Zhejiang Province, yesterday. Europe and the US has seen a surge in clothing imports from China since textile quotas ended last year. While the US has already threatened to restore quotos, the EU is simply talking about setting guidelines. PHOTO: AP

Unlike the US, the EU is not yet considering action to stem the surge in textile imports from China that followed the end of quotas last year, a European trade official said on Tuesday.

Instead, the European Commission, which takes the lead on international trade issues for all 25 countries in the union, was to complete a set of guidelines yesterday to determine when and how to step in. The guidelines would set parameters, possibly on market share or unit volume, that could ultimately set off safeguards.

"The guidelines are not a step toward introducing curbs on Chinese imports," an adviser to Peter Mandelson, the European trade commissioner, said on Tuesday. "It's important to be ready to react in a timely, measured way. That's what the guidelines are for." The adviser declined to be identified, citing commission policy.

Mandelson is expected to propose extending the period of time needed to assess the surge in imports. Now, the EU can impose sanctions on imports using one or two months of data.

Senior Chinese officials will meet with Mandelson tomorrow to discuss, among other things, the distortion in textile trade.

Imports of Chinese tights and pantyhose into the EU skyrocketed 1,940 percent by value in January and February, compared with a year earlier, according to Euratex, the European textile industry association. The value of imports of pullovers and jerseys from China increased 893 percent, while imports of trousers more than tripled, Euratex said.

The US has experienced a similar surge in clothing imports from China since the quotas ended, but its reaction has been stronger.

On Monday, the US Commerce Department said it would begin an investigation into the need to reimpose quotas on a wide variety of Chinese apparel.

US Commerce Secretary Carlos Gutierrez promised to "work to ensure that American manufacturers and workers compete on a level playing field."

"This is the first time the US government has self-initiated any sort of action against China," said Missy Branson, senior vice president for the National Council of Textile Organizations.

"That obviously sends a strong signal our government is not going to stand by and see US jobs lost while [China] continues to cheat and use unfair trading practices," she said.

Quotas were lifted Jan. 1 on virtually all textile and apparel items as a condition of China's new membership in the WTO.

Membership also guarantees the US government can challenge some of China's trading freedoms if it can prove harm to US markets.

According to the Commerce Department, China shipped 84.5 million cotton knit shirts to the US in the first three months of this year, an increase of 1,258 percent from the same period a year ago.

Another government report last week showed the loss of 7,600 textile and apparel jobs, bringing job losses for the industry to 17,200 this year.
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