EU Still Seeks China Textile Deal - New York Times
EU Still Seeks China Textile Deal - New York TimesMay 30, 2005
EU Still Seeks China Textile Deal
By THE ASSOCIATED PRESS
Filed at 8:04 a.m. ET
BRUSSELS, Belgium (AP) -- The European Union said Monday it was ''surprised'' by China's decision to scrap concessions meant to avert a trade war over textiles, but appealed to Beijing to continue talks.
China was informed that the EU would call for formal consultations under world trade rules last Friday, EU spokeswoman Claude Veron-Reville said, and added that the EU was puzzled why Beijing would cancel its plans to sharply increase export duties.
''When we heard of that (Chinese action) we were surprised,'' she said. ''We are still willing to discuss, to negotiate, to a mutually satisfactory settlement.''
Beijing had said earlier that it would quintuple export tariffs on 74 types of goods on June 1, in efforts to appease the EU and United States to not restrict textile imports that have soared since a global quota system expired on Jan. 1.
On Friday, the EU took its dispute with China to the WTO, which will force Beijing to curb shipments of two sensitive trade categories -- T-shirts and flax yarn.
China withdrew the planned tariffs on Monday. China's Commerce Minister Bo Xilai criticized the new U.S. and EU textile quotas as a violation of WTO rule and said Beijing would ''firmly protect'' its legal rights, though he didn't say what steps his government would take.
The escalation came after informal talks between the EU and China failed to reach a deal.
Under the WTO talks China will be forced to restrict exports of flax yarn and T-shirts. Imports of these products can be ''no greater than 7.5 percent above the amount that entered the EU market during the period from March 2004 to February 2005,'' the EU has said.
Chinese imports of T-shirt in the first four months of 2005 rose by 187 percent over the first four months of 2004. Flax yarn imports rose by 56 percent during that period, according to EU figures.
The EU has said Chinese imports are not only hurting European producers but those in Africa as well.
EU Still Seeks China Textile Deal
By THE ASSOCIATED PRESS
Filed at 8:04 a.m. ET
BRUSSELS, Belgium (AP) -- The European Union said Monday it was ''surprised'' by China's decision to scrap concessions meant to avert a trade war over textiles, but appealed to Beijing to continue talks.
China was informed that the EU would call for formal consultations under world trade rules last Friday, EU spokeswoman Claude Veron-Reville said, and added that the EU was puzzled why Beijing would cancel its plans to sharply increase export duties.
''When we heard of that (Chinese action) we were surprised,'' she said. ''We are still willing to discuss, to negotiate, to a mutually satisfactory settlement.''
Beijing had said earlier that it would quintuple export tariffs on 74 types of goods on June 1, in efforts to appease the EU and United States to not restrict textile imports that have soared since a global quota system expired on Jan. 1.
On Friday, the EU took its dispute with China to the WTO, which will force Beijing to curb shipments of two sensitive trade categories -- T-shirts and flax yarn.
China withdrew the planned tariffs on Monday. China's Commerce Minister Bo Xilai criticized the new U.S. and EU textile quotas as a violation of WTO rule and said Beijing would ''firmly protect'' its legal rights, though he didn't say what steps his government would take.
The escalation came after informal talks between the EU and China failed to reach a deal.
Under the WTO talks China will be forced to restrict exports of flax yarn and T-shirts. Imports of these products can be ''no greater than 7.5 percent above the amount that entered the EU market during the period from March 2004 to February 2005,'' the EU has said.
Chinese imports of T-shirt in the first four months of 2005 rose by 187 percent over the first four months of 2004. Flax yarn imports rose by 56 percent during that period, according to EU figures.
The EU has said Chinese imports are not only hurting European producers but those in Africa as well.
posted by Eastlaw at 7:23 AM
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