AEDT Warns against Extension of Chinese Textiles Quota
Source: AEDT - European Association of Fashion Retailers Date: 2007-07-23
On Sunday 22 July 2007, the EU Trade Ministers will hold an informal meeting. It is likely that on this occasion, the EU-China agreement on imported textiles and the expiry of the import restrictions on 10 product categories at the end of 2007 will be an important issue of discussion.
In a letter to the Member States, AEDT President, Betty Van Arenthals, explained that "any request to seek an extension of the quota on Chinese textile imports in 2008 comes absolutely too late. Most retailers have already placed their orders, signed contracts and made payments."
"Traders need one year predictability and decision-makers should not forget the textile crisis in 2005 when importers could not receive the merchandise they had already paid for. Against this background, AEDT urges the Member States to oppose any possible extension of the textile quota from China".
Import restrictions on textiles from China have just led to import displacement with companies shifting their sourcing to other competitive Asian countries. In 2008, most companies will continue to adopt a geographically diversified sourcing strategy for their imports.
Trying to extend again the quota would not support European producers’ competitiveness but would only harm companies (both suppliers and retailers) and weaken Europe’s external trade policy and credibility.
As far as the overall trade relations with China are concerned, AEDT fully supports Member States and European Commission’s commitments to improve market access and fight against intellectual property rights infringements.
