European Apparel and Textile Organisation
24 rue Montoyer – B – 1000  Brussels
phone: + 32.2.285.48.81 – Fax : +32.2.230.60.54
e:mail : william.lakin@euratex.org
Web-site : www.euratex.org

Euratex confirms European Manufacturers view that June 10th EU - China Textile/Clothing deal be respected.

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EURATEX CONFIRMS EUROPEAN MANUFACTURERS VIEW THAT JUNE 10th EU –CHINA TEXTILE/CLOTHING DEAL BE RESPECTED



August 30th 2005.

On behalf of EU textile and clothing manufacturers EURATEX today supported the 29th August statement of EU Trade Commissioner Peter Mandelson that “the primary shared interest and determination is to preserve the original overall agreement (reached between Commissioner Mandelson and the Chinese authorities on June 10th 2005 in Shanghai)”.

Speaking in Brussels today EURATEX President Filiep Libeert stressed that the fundamentals of the situation which had led to the bilateral agreement between the two sides had not changed in the three month period since the quantitative limits for the ten product categories had been agreed. “Even before June 10th it was already abundantly clear that the EU was facing an unprecedented surge in many categories of textile and clothing products from China, and that measures were required to avoid the worst excesses of predatory pricing and the resultant job losses and company closures. Importers and distributors had been fully aware of the risks that such a surge could imply in the light of the special textile safeguard clause which was an integral part of Chinese accession to WTO. This too had been the subject of considerable discussion within the High Level Group on the future of textiles and clothing in the EU set up in 2004 by Commissioners Lamy and Liikanen which included representatives of importers and distributors and which in its report of June 30th 2004 called explicitly for the Commission to issue guidelines for the possible use of the above safeguard clause. No one then should claim that they were unaware of the risks involved in placing orders for huge quantities of Chinese goods for delivery in 2005” he said.

“For this reason, even though the volumes negotiated by Commissioner Mandelson with his Chinese counterparts appeared to the industry to be higher than it would have wished, EURATEX had felt appropriate to accept the compromise reached and not sought to jeopardise the agreement itself.



Indeed, in the light of present circumstances, and in justifiable defence of the interests of the 170.000 textile and clothing manufacturers across the EU and their 2.5 million employees, who stand ready to continue to provide quality products at competitive prices to distributors and retailers in Europe, we strongly support Mr. Mandelson’s comments on August 29th that the primary shared interest and determination is to preserve the original overall agreement” he added.

Commenting on the volumes of goods blocked at EU borders, Mr. Libeert noted that there had been an unprecedented acceleration in licences granted or pending over the period since June 11th. He indicated that the European industry would be prepared to carefully examine any workable proposals which might be made to alleviate the situation of those who had placed orders for such goods in good faith but he stressed that any solution must remain within the framework of the original overall agreement reached with the Chinese authorities on June 10th and must not further damage the interests of EU manufacturers of textiles and clothing.

Mr. Libeert drew attention in concluding to the fact that the EU industry remained strongly committed to free but fair trade, and that it continued to seek proper market access to closed third markets for the 20% plus of its turnover already exported abroad.



For further information contact:

William LAKIN Francesco MARCHI
Director General Director Economic Affairs
Tel : +32.2.285.48.82 Tel : +32.2.285.48.92
Fax : +32.2.230.60.54 Fax : +32.2.230.60.54
william.lakin@euratex.org francesco.marchi@euratex.org