EU states to consider Chinese textile deal

EU states meet today to approve a deal with China to unblock some 77 million garments held up at European borders after Chinese textile imports broke through 2005 quota limits.

EU Trade Commissioner Peter Mandelson and Chinese Commerce Minister Bo Xilai agreed yesterday to allow half of the excess garments to be allowed in outside quota rules and half to be counted against limits for this year and next year.

The EU’s 25 member states need to back the deal before the clothing can go on sale in European stores. The agreement effectively raises import limits for this year amid growing concern that a flood of cheap Chinese goods undercuts European producers.

France and Italy – two major textile producers – pushed for restrictions in an EU-China pact struck in June to stem the rapid growth of Chinese trade.