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EU to move on Chinese textiles probe

Peter Mandelson - EU warning for China on textiles
Peter Mandelson - EU warning for China on textiles

The European Union executive commission is to decide on Thursday about opening an investigation into some categories of Chinese textile imports, the first step towards imposing limits, a spokeswoman for the EU's executive commission said.

'The European Commission will definitively decide on Thursday about launching the investigation,' said commission spokeswoman for trade issues, Claude Veron-Reville.

EU trade commissioner Peter Mandelson called last week for investigations to be launched after Brussels received data showing that Chinese textile imports were surging well beyond levels it considers tolerable.

Chinese textile imports into the European Union have soared by as much as 534% for some garments since the end of a 31-year-old global quota system on January 1, 2005.

A majority of EU states want to see the commission pursue emergency measures leading to a fast-track application of limits on the booming Chinese textile imports.

Meanwhile, France today lodged a formal request with the European Commission for emergency action to curb Chinese textile imports.

A spokeswoman said the EU executive received a letter from French Industry Minister Patrick Devedjian and Foreign Trade Minister Francois Loos seeking to short-circuit a process which could trigger limits on nine categories of clothing and textiles.

The Commission has warned member states against over-hasty action, saying it could fall foul of World Trade Organisation rules and trigger a challenge from China.

In Beijing, a spokesman for China's Commerce Ministry said a planned EU investigation into its textile exports ran counter to the spirit of free trade and could damage Sino-European trade.

China signed orders worth about $3.2 billion for 30 European Airbus aircraft last week during a visit by French Prime Minister Jean-Pierre Raffarin. The Chinese note that each plane is worth the equivalent of 20 million Chinese shirts exported to Europe.

After joining the World Trade Organization in 2001, China agreed to allow members of the organisation to place import restrictions on its clothing and textiles if a sudden surge in shipments threatened to disrupt their markets. The so-called 'safeguards' provision, which allow countries to limit Chinese imports to 7.5% above the previous year, expires at the end of 2008.