| (From EU website) Following from their
2005 Memorandum of Understanding on cooperation in managing the
transition to free trade in textiles, the European Commission and
the Chinese Ministry of Foreign Trade have decided on a system of
joint import surveillance that will operate for one year in 2008
following the end of the import growth caps on ten categories of
textiles and clothing from China. The 'double checking system' will
track the issuing of licences for export in China and the importation
of goods into the EU. This monitoring system provides a clear picture
of the likely development of trade patterns and ensures predictability
for EU businesses. The arrangement covers the eight most sensitive
of the ten product categories covered by the levels agreed in 2005
and that will expire at the end of the year. Although imports of
these goods will be closely monitored their level of import will
not be restricted by this arrangement.
EU Trade Commissioner Peter Mandelson said: "I welcome this
further step in the cooperation between the EU and China in ensuring
a smooth transition to free trade in textiles. A system of joint
monitoring means predictability for EU producers and traders as
well as a clear picture of future developments as we make the
final step to free global trade in textiles and clothing".
The product categories subject to double-checking will be categories
4 (T-shirts), 5 (pullovers), 6 (trousers), 7 (blouses), 26 (dresses),
31 (bras), 20 (bed linen) and 115 (flax yarn). The system will
be formally adopted by the European Commission in the days ahead.
It will be administered by EU Member State licensing offices.
Background
Following the final stage of global liberalisation on January
1 2005, textile and clothing exports to Europe from China experienced
a very rapid surge accompanied by very rapid drops in unit prices.
This surge caused serious damage to many EU producers and precluded
any realistic possibility of EU producers adapting to new levels
of competition. The EU and China negotiated a Memorandum of Understanding
that would cap imports from China at agreed levels each year until
2008. The Memorandum also committed both sides to working for
a smooth transition to free trade in textiles in 2008.
The 2005 agreement has allowed textile and clothing exports from
China to continue to grow, but at a rate that has allowed EU producers
to adjust to new levels of competition. This breathing space created
with China in 2005 until the end of 2007 has provided a further
opportunity for EU textile producers to adapt to new levels of
competition, invest in technological change and innovation and
focus on high value added products. Through its
Global Europe strategy the European Commission has focused new
efforts and new resources on opening new markets for EU textile
exports and reducing the level of counterfeiting of European textile
goods. Europe is the world's second largest exporter of textiles
and clothing.
(http://ec.europa.eu/trade/issues/sectoral/industry/textile/pr091007_en.htm)
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