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Resolution of textile dispute sought

Textiles - Garments held in EU ports
Textiles - Garments held in EU ports

Talks are continuing in Brussels to try and resolve the dispute over millions of Chinese textile products which have been held in EU ports by customs.

A proposal by the EU Trade Commissioner, Peter Mandelson, to allow some 80 million garments to be released is being discussed by EU member states.

Some countries, notably Italy, Spain, France, Greece and Portugal, are said to oppose the move. They are worried about the effect of Chinese imports on their own textile sectors.

Under an agreement between the EU and China in June, a new quota system was introduced for textiles entering the EU.

Many orders were placed by European wholesalers before the agreement was concluded, but it is believed a surge of orders was also made just after the deal was struck, but before it came into effect.

These are the orders - which retailers say have been paid for - which are now stuck at EU ports.

It is believed Mandelson's proposal involves allowing all garments ordered just before 12 June to be allowed in, while applying the quota system to anything ordered after that date.