EU could broaden Chinese textiles inquiry

A European Union investigation  into a the surge in Chinese textile imports could be broadened to 11 more categories of products…

A European Union investigation  into a the surge in Chinese textile imports could be broadened to 11 more categories of products in addition to the nine already facing possible curbs, the EU Commission said today.

"There are 11 other categories approaching the alert level," European Commission spokeswoman Claude Veron-Reville said.

EU trade commissioner Peter Mandelson has already recommended an inquiry into nine categories of Chinese textiles and clothing, of which imports have leapt by up to 534 per cent since the end of a global quota system on January 1 st.

That investigation into a range of clothing is expected to open on Friday, could lead to EU restrictions on Chinese shipments within 150 days.

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Alarmed by the impact on Europe's textile and clothing industry and the potential loss of jobs, France lodged a formal request yesterday to fast-forward the EU process leading to curbs on imports from China.

After quotas were scrapped in January the Commission put in place a strict regime for monitoring Chinese clothes and textile imports as part of a drive to protect European producers.

This is a graded statistical surveillance system rising from green through yellow and orange to red, at which point the EU executive would resort to safeguards.

After joining the WTO in 2001, China agreed to allow members of the organisation to place import restrictions on its clothing and textiles if a sudden surge in shipments threatened to disrupt their markets.

The so-called "safeguards" provision allows countries to limit Chinese imports to 7.5 per cent above the previous year.