EU, China strike deal to end trade dispute over clothing

CHINA and the European Union reached a deal yesterday to release millions of Chinese garments blocked by EU customs officers because they exceed import ceilings, clearing up a mess that was souring ties.

The search for a solution to release the 88 million sweaters, t-shirts, bras and other items had split the 25-member EU, embarrassed the EU's executive Commission and distracted diplomats from a China-EU summit in Beijing.

Millions of euros worth of clothes still remains locked up at warehouses in Dublin Port despite yesterday's agreement between China and the EU to end the fight.

According to a spokesman for the Revenue Commissioners some 60 containers full of clothing each filled with up to 20,000 garments had yet to be released by customs officers.

EU Commission spokeswoman Françoise Le Bail said: "I would like to confirm that Chinese and European negotiators have managed to reach an agreement on the textiles that were stopped in customs."

Le Bail described the deal as "equitable" and said both sides would share the burden of the extra imports this year.

Officials said this would mean Beijing agreeing to count roughly half of the blocked goods as part of its 2006 EU export quota.

Chinese Premier Wen Jiabao said: "I can assure you the result is fair and equitable."