Quotas ‘no solution’ to China exports

RESTORING import quotas that were abolished at the start of the year is not the solution to the European Union’s efforts to quell surging textile exports from China, European Trade Commissioner Peter Mandelson has said.

Bowing to pressure from more than a half-dozen EU governments, Mr Mandelson gave China a final chance to limit exports of T-shirts and flax yarn to the bloc before the EU imposes quotas. The US has also tried to protect domestic industry from Chinese garment exports that have grown since 40-year-old quotas were lifted on January 1.

The transition to open markets “has to be managed”, Mr Mandelson said yesterday at the World Economic Forum in Jordan.