7 D/ @8 t% s0 y p( E: IFriday July 20, 20072 a% w0 U% y) r/ r
8 N7 G, t1 f4 FBritish retailers today urged the government and the European commission to stand firm on scrapping quotas on Chinese clothing imports from the end of this year or risk another "bra wars" fiasco. 9 @5 F, @0 m- e) H9 ]1 R; o- N; J! T- @
The call from the British Retail Consortium (BRC) was backed up by the EU-wide Foreign Trade Association (FTA) which told Peter Mandelson, EU trade commissioner, to reject protectionist moves led by France and parts of the textiles industry to extend the quota ceilings imposed in 2005. " Y. O+ I' p7 X' N* U! D% [4 W: N: n
Mr Mandelson is pressing China to agree to joint monitoring of imports in 2008 but so far the Beijing authorities, who have cut some export rebates, have been lukewarm. China accounts for 23.8% of the EU market, according to Euratex, the producers' lobby group. - |6 @1 x r" L3 D8 d % B0 F1 ?7 ]* {% b- S2 |- W p$ E6 h" `4 C3 s3 m' i1 t
The former Labour cabinet minister reluctantly agreed in 2005, under pressure from France and other "Club Med" EU states, to cap rising levels of clothing imports from China such as tee-shirts to around 12.5%. 7 @9 E# p& S1 {0 C8 O1 t- ?+ n5 B. c0 K m
8 j& J2 S4 z% i5 q yThis followed a doubling of imports in some categories accompanied by savage price cuts in just a few months after all trade restrictions were removed. Tens of millions of clothing items were blocked at European ports. / N, f# |4 e) e6 Q7 k
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8 i Q6 Z K* a1 YAhead of Sunday's meeting of EU trade ministers, Kevin Hawkins, BRC director general, said France wanted to extend the quotas for a further year but retailers were already ordering new ranges for spring and summer 2008 and wanted a firm commitment to free trade. ' l2 V; e. q3 O8 ?& Z0 s, ` - A" O, k( A, W+ L& @In a letter to trade and consumer affairs minister Gareth Thomas, he warned against "recent political developments which threaten to undermine Europe's trade policy, signalling a descent into a damaging protectionist spiral". # N! \7 S$ {( t4 c* e9 j9 Y) A
% |2 P& X4 I: ]5 I& z: O+ RHe accused countries such as France and Italy of failing to pass on to consumers price cuts over the past decade. UK retail clothing prices have fallen 50% in 10 years. . E8 N! _* [5 r" B' F1 G
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Ferry den Hoed, FTA president, who met Mr Mandelson today, said: "We now have to get serious with the commission on its promises to retailers, importers and ultimately consumers for the creation of a liberal market for world trade in textiles." - h% s- a+ w2 ]# C m
1 [4 L0 \# g5 ` 2 y1 w1 J* M8 \9 `* I& TMr Mandelson meets producers on Monday. He says that the current system has stabilised, giving European firms a breathing space to adapt to new levels of competition and focus on high value-added products, with Italian exports to China up significantly. Total Chinese textile imports to the EU have risen 42% in volume in two years while consumer prices overall have fallen 16%.
