Importers cautiously welcome textile deal with China

European importers expressed cautious welcome to the new textile agreement between the European Union (EU) and China, which replaces import quotas with joint monitoring of trade flow in 2008.

“We welcome the fact that quotas have ended, but the double checking system will put administrative burden on our members, importers and retailers”, said Stuart Newman, a spokesman for the Foreign Trade Association (FTA).

The European Commission announced it had reached an agreement with China to end quota restrictions on Chinese textile imports with a joint surveillance system to monitor the trade flow next year. The so-called "double checking system" which will operate for one year in 2008, is going to track the issuing of licences for export in China and the importation of goods into the EU.

Following a so-called "textile war," the EU and China reached an agreement in June 2005 on resuming quotas on China's textile exports to the EU, which expires at the end of 2007.

Newman said the introduction of the monitoring system was at least a better choice than the retention of quotas as pressed for by EU textile producers and some member’s states.