EU's Mandelson confident on China textile talks - Forbes.com
EU's Mandelson confident on China textile talks - Forbes.com
AFX News Limited
EU's Mandelson confident on China textile talks
05.31.2005, 09:18 AM
GENEVA (AFX) - EU trade chief Peter Mandelson said today that he was confident about talks with Beijing, amid efforts to halt an escalating trade war over surging Chinese textile imports.
'I am happy with the state of talks between the EU and China,' Mandelson told reporters after a visit to the World Trade Organisation.
He did not give details of the discussions.
On May 27, the EU requested formal WTO talks with China on the issue, citing figures showing a big jump in Chinese imports of T-shirts and flax yarn into the EU following the end of a global textile quota system on Jan 1.
The EU request followed a similar move by the US.
Under the rules on China's accession to the WTO more than three years ago, a request for talks enables Beijing's trading partners to place a temporary cap on textile imports, if China does not first take its own voluntary measures within 15 days.
The EU and US moves have met with anger from China, which accuses Washington and Brussels of ill-disguised protectionism.
China has complained that the EU and US knew that a four-decade-old textile quota system would end this year, under a 1995 agreement, and should have been prepared.
The Asian economic giant has charged that the EU lacked evidence to justify its complaint about Chinese imports -- a claim Brussels has rejected.
In an about-turn from a more conciliatory position, China said Monday it was scrapping export tariffs on a range of textile goods from June 1 and would also revoke a decision on May 20 to raise export taxes on 74 textile and clothing products.
'This makes it all the more desirable to reach agreement with the Chinese about what course of action should be taken,' Mandelson said.
Asked if Brussels would move against more Chinese textiles if talks stalled, Mandelson declined to elaborate.
'A range of categories are under investigation by the EU,' he said. 'All these are in the frame.'
The US has so far gone further than the EU, slapping import quotas on seven categories of Chinese textile goods.
The dispute with Washington has also been fuelled by US concerns that China's currency is undervalued, giving it an unfair advantage on the global market.
Two weeks ago, the US gave China a six-month deadline to revalue or be accused of currency manipulation.
'We're taking somewhat different approaches but there is a danger that we will be caught up in the same Chinese response,' Mandelson said.
Trade experts say that Beijing and Western governments have no option but to find common ground and defuse their dispute, because of the huge importance of the Chinese market to the global economy.
jwf/bar/hd/cw
COPYRIGHT
Copyright AFX News Limited 2005. All rights reserved.
The copying, republication or redistribution of AFX News content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
AFX News and the AFX Financial News logo are registered trademarks of AFX News Limited
AFX News Limited
EU's Mandelson confident on China textile talks
05.31.2005, 09:18 AM
GENEVA (AFX) - EU trade chief Peter Mandelson said today that he was confident about talks with Beijing, amid efforts to halt an escalating trade war over surging Chinese textile imports.
'I am happy with the state of talks between the EU and China,' Mandelson told reporters after a visit to the World Trade Organisation.
He did not give details of the discussions.
On May 27, the EU requested formal WTO talks with China on the issue, citing figures showing a big jump in Chinese imports of T-shirts and flax yarn into the EU following the end of a global textile quota system on Jan 1.
The EU request followed a similar move by the US.
Under the rules on China's accession to the WTO more than three years ago, a request for talks enables Beijing's trading partners to place a temporary cap on textile imports, if China does not first take its own voluntary measures within 15 days.
The EU and US moves have met with anger from China, which accuses Washington and Brussels of ill-disguised protectionism.
China has complained that the EU and US knew that a four-decade-old textile quota system would end this year, under a 1995 agreement, and should have been prepared.
The Asian economic giant has charged that the EU lacked evidence to justify its complaint about Chinese imports -- a claim Brussels has rejected.
In an about-turn from a more conciliatory position, China said Monday it was scrapping export tariffs on a range of textile goods from June 1 and would also revoke a decision on May 20 to raise export taxes on 74 textile and clothing products.
'This makes it all the more desirable to reach agreement with the Chinese about what course of action should be taken,' Mandelson said.
Asked if Brussels would move against more Chinese textiles if talks stalled, Mandelson declined to elaborate.
'A range of categories are under investigation by the EU,' he said. 'All these are in the frame.'
The US has so far gone further than the EU, slapping import quotas on seven categories of Chinese textile goods.
The dispute with Washington has also been fuelled by US concerns that China's currency is undervalued, giving it an unfair advantage on the global market.
Two weeks ago, the US gave China a six-month deadline to revalue or be accused of currency manipulation.
'We're taking somewhat different approaches but there is a danger that we will be caught up in the same Chinese response,' Mandelson said.
Trade experts say that Beijing and Western governments have no option but to find common ground and defuse their dispute, because of the huge importance of the Chinese market to the global economy.
jwf/bar/hd/cw
COPYRIGHT
Copyright AFX News Limited 2005. All rights reserved.
The copying, republication or redistribution of AFX News content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
AFX News and the AFX Financial News logo are registered trademarks of AFX News Limited
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