EU Official, China Textile Negotiator Meet

[HenryTo]

Let's hope the Europeans and the Chinese avoid a direct confrontation here and settle this in an honorable way. Quote of the day: "Mandelson said the glut in Chinese imports needed to be contained to give European producers breathing space to adapt to an open global market."

Sorry - but didn't the textile industry have already over 50 years to adapt?
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EU Official, China Textile Negotiator Meet

European Union trade chief Peter Mandelson and Chinese negotiator Gao Hucheng held constructive talks to seek a way out of their textile dispute Tuesday, the eve of the EU's decision on whether or not to take further measures to contain the surge in Chinese exports.

Underlining a willingness to find a compromise without resorting to restrictive quotas, Mandelson lauded Gao for "good work, good progress" during technical talks between the two sides on Tuesday.

"The tone of the meeting was constructive. Talks are continuing," said an EU statement after the one-hour negotiating session between the two.

Serving green tea for Gao and offering him eucalyptus mints to treat a sore throat, Mandelson tried to break the trade tension as soon as the session started. "This is another act of Euro-Chinese friendship," he told a hoarse Gao, China's top textile negotiator.

Because of the good atmosphere between the two, a negotiating window could be offered until the end of the month before the EU head office decides to launch bilateral consultations that could pave the way for restrictive measures against Beijing, an official, who asked not to be identified, said.

The EU's executive Commission will discuss the issue again during its weekly meeting Wednesday.

Last week, China announced new tariffs on its surging textile exports in a concession aimed at easing a clash with the United States and Europe over the textile trade.

The 25-nation EU claims its textile industry has been seriously hurt by the opening of its market to Chinese exports on Jan. 1, losing production and employment. Mandelson has said though that consumers, distributors and retailers took a different view and seized a market opening.

Under the terms of China's World Trade Organization membership, if another member state can establish that Chinese textiles are disrupting the market, it may request bilateral consultations at the WTO.

At that point, China must restrict its exports to that member to 7.5 percent more than the volume exported in the previous 12 of the last 14 months.

Most EU nations on Monday backed the move toward restrictive measures. Mandelson said the glut in Chinese imports needed to be contained to give European producers breathing space to adapt to an open global market.

He said EU production and employment already have slumped dramatically in the T-shirt and flax yarn sectors since the beginning of the year, when Chinese exports quotas were lifted under WTO rules.

Growth in T-shirt imports stood at 187 percent over the first four months of the year compared to the year-earlier period, and at 56 percent for the flax yarn sector.

The United States already has imposed limits on Chinese exports.

[HenryTo]

I missed this yesterday - looks like China isn't going to give any further concessions except for the latest tariffs that they imposed on their own goods last week.
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EU, China fail to resolve textiles dispute

REUTERS, BRUSSELS

May 25: Europe and China held talks yesterday on surging Chinese textile imports, but showed no sign of a breakthrough on the eve of a Brussels decision to demand emergency consultations that could lead to import curbs.

Chinese textile exports have boomed since global quotas were scrapped at the start of the year, sparking concern in the United States and Europe that a flood of cheap imports will bankrupt domestic producers and cause massive layoffs.

EU Trade Commissioner Peter Mandelson met China's textile negotiator Gao Hucheng in Brussels for an hour to discuss the issue, but there was little hint of progress.

"The tone of the meeting was constructive. Talks are continuing," the European Commission said in a 3-line statement.

An EU official said Gao would stay in Brussels for more talks on Wednesday, when the Commission is set to demand formal consultations with Beijing over t-shirt and flax yarn exports. The EU executive is in charge of the 25-nation bloc's trade policy. Member states gave the Commission the green light on Monday to start the emergency action against China.

"The Chinese government is not thinking about any fresh measures to control textile exports," China's Vice Finance Minister Lou Jiwei told Reuters on the sidelines of a business forum in Beijing.

China said it would increase export tariffs on 74 lines of clothing and textile products last week but industry executives have expressed doubt about whether they will make much of a difference, given the Asian giant's low production costs.