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The European Union (EU) wants greater access to the Chinese market in the textile sector and it is sure to lift textile quotas as scheduled, according to a senior EU official.
Jean-Paul Mingasson, Director-General of the European Commission's Enterprise Directorate-General, said he is visiting China to be sure that EU textiles will have fair access to the Chinese market.
He said there was no doubt that the EU would lift textile quotas on December 31 this year as agreed with WTO members.
Under the Agreement on Textiles and Clothing (ATC), all quotas restricting textile and clothing trade between World Trade Organization (WTO) members will be eliminated by December 31, 2004.
But some 90 textile trade associations around the world have been campaigning for months to have the WTO consider delaying quota elimination. They say that cheap Chinese textiles will flood world markets.
EU, the United States and Canada are three major countries using the quota system.
"The EU textile makers will face challenges and China's share in the EU market will increase after the quota lifts," Mingasson said.
"But it is not my concern. To ensure the fair access of EU textiles is the major problem," he said.
He said he believed EU textiles are attractive to Chinese consumers.
But if the Chinese textile exports to the EU market jump dramatically, the EU will apply specific safeguard measures on textiles.
The United States has used such protectionist quotas on Chinese imports of knitted fabrics, dressing gowns and bras.
China's attitude is that the United States could impose specific safeguard measures, or quotas, on Chinese textiles and apparel products before December 31, 2008 if it determined that such shipments from China cause or threaten to cause market disruption.
Mingasson is expected to talk on the first Industrial Policy Dialogue between the EU Enterprise Directorate-General and the National Development and Reform Commission today.
The purpose of the dialogue is to enhance mutual understanding of current and forthcoming policy, to prevent conflicts and find solutions in the industrial sector.
Three working groups have been established in the automobile, metal and textiles sectors.
The new auto policy implemented by the Chinese Government in June will be another important issue at the meeting, Mingasson said.
He said as joint venture partners of Chinese auto companies, EU auto makers are paying great attention to the policy. The Chinese Government sets ambitious goal in the policy, and the EU partners want to make sure that they will have equal treatment, for example, in the distribution channel.
(China Daily September 21, 2004)
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