EU deal should avoid winter clothing shortage

IRELAND will avoid a shortage of clothing and underwear this winter after the European Commission took the first steps to defuse a major trade row with China yesterday.

EU trade commissioner Peter Mandelson said he would remove “a serious glitch” in a quota system designed to manage imports from China and prevent suppliers from other countries being squeezed.

The EU brought in restrictions on imports of bras, knickers, shirts, blouses, jumpers and men’s trousers, but critics said the proposals were flawed from the start and poorly handled. Customs officials recently began seizing Chinese imports after quotas for the entire year were exceeded ahead of schedule.

Mr Mandelson did not give details of proposed changes discussed in crisis talks between EU governments in Brussels yesterday.

The Irish Clothing and Textiles Alliance (ICATA) said ahead of the crunch meeting that Ireland’s clothing industry faced a crisis, because Chinese goods were being blocked by Irish customs authorities. It estimated up to 70 million garments were now stockpiled across Europe awaiting customs approval.

ICATA director Michael Hannon said: “Fashion suppliers are under increasing pressure as their product, which is seasonal and has a short shelf life, is piling up in Irish and European ports.

“If not resolved quickly, this dispute will reduce the choice of garments available to shoppers this winter and could lead to higher prices. If companies cannot get hold of products which they have already paid for but which remain blocked, they will be forced to offset these losses through higher prices.”

Mr Mandelson was upbeat on prospects for avoiding empty shelves in the run-up to Christmas. “I am glad the member states have recognised the urgency of removing what is a serious glitch,” he said.

But he faces a tough time reconciling the wishes of countries like Sweden, the Netherlands and Germany, against the quotas, and those keen to protect home manufacturing bases, such as France and Spain.

Mr Hannon said the quotas had failed to take the needs of the fashion industry into account.

“Once in the middle of a fashion cycle, it is practically impossible for an Irish company to switch to a supplier from a different country as the company is effectively locked into the deal at the sample ordering stage,” he said.