EU to Allow Imports of Quota-Exceeded Chinese Textiles

The European Commission, the executive arm of the European Union (EU), said on Tuesday that the EU would allow imports of two categories of quota-exceeded Chinese textiles which are already in shipment.
The EU and China reached an agreement in Shanghai in June whichset annual import restrictions for 10 categories of Chinese textiles and clothing products.

Category 5 (pullovers) and Category 6 (trousers) have reached the quantitative limits for 2005, according to the commission.

However, a number of shipments of the two categories of Chinesetextiles are still on the way to the European markets.

"The problem has been caused by importers trying to beat the restrictions after the Shanghai Memorandum of Understanding (MOU) was signed on June 10," said EU Trade Commissioner Peter Mandelsonin a statement.

"We will not know the full extent of the problem until data hasbeen collected after the middle of this month. In the meantime, shipments originating from the time of the signing of the MOU until July 11 have been allowed into Europe," said the commissioner.

"Final decisions, including some flexibility on the future management of the quotas will not be taken until early September and will be resolved in agreement with the Chinese authorities," he added.