Mandelson outlines proposals to break EU-China trade deadlock

EU trade commissioner, Peter Mandelson, has announced proposals aimed at breaking the deadlock between the EU and China over Chinese textile imports.

Mr Mandelson did not detail the proposals, which will be put forward to member states, but he said that he hoped that millions of items of imported Chinese clothing, currently impounded by customs, could be released by the middle of next month.

Millions of items of clothing, including trousers, bras and sweaters are being held in customs warehouses across Europe, because of the introduction of new import quotas.

The quotas were introduced in order to prevent the EU being flooded with cheap Chinese imports, following the end of a global quota system at the beginning of the year.

However, the new restrictions have led to millions of items of clothing from China not being allowed into the EU.

British retailers have warned of a potential clothing shortage this winter if the goods are not released.

On Monday, Mr Mandelson said: “I cannot accept that EU retail businesses should be penalised unfairly by the introduction of the agreement with China. I have set in motion procedures to unblock the goods.”

The announcement follows five days of debate between the EU and China over the quotas.

The British Retail Consortium warned that clothing prices could rise in the UK if the Chinese goods were not released. Alisdair Grey from the BRC said that the goods should not count against 2006 quotas – a move believed to be favoured by countries such as France, Spain and Italy.

The Conservatives have criticised Mr Mandelson’s handling of the affair. Shadow Trade and Industry Secretary David Willets accused Mr Mandelson of being “completely out of touch” and agreeing to “absurd European protectionism”.

(KMcA/GB)