UK abstains in key EU vote on China's textiles
By Philip Thornton, Economics Correspondent
24 May 2005
Britain abstained in a key vote in Brussels as four European Union countries criticised plans by Peter Mandelson, the trade commissioner, to ratchet up the dispute with China over surging textile imports.
Sweden and Holland voted against the proposal last night while the UK joined Denmark in abstaining by voicing concern.
However, a majority of EU ministers voted to sanction Mr Mandelson's request to demand formal emergency talks under World Trade Organisation rules for Brussels to impose curbs of up to 7.5 per cent in the growth of imports of T-shirts and flax yarn. A UK source said: "We abstained and although the measure got through we made clear it was an exception and this was not a blanket position for future action."
Mr Mandelson said there was "overall support" for his proposal, which follows intense pressure from countries such as France to take measures to protect European textile jobs.
Under the terms agreed by China when it joined the WTO in 2001, the EU can impose import curbs within 15 days of the start of formal consultations if Beijing has taken no effective action to limit exports.
China's textile negotiator, Gao Hucheng, will meet Mr Mandelson today in Brussels. In an attempt to ease tensions, China said last week it would raise tariffs on a range of textile exports from 1 June.
The trade commissioner told MEPs: "Some countries voted against, a number of others expressed concern about the commission's action without actually voting to impede it."
According to Euratex, the textiles employers' group, there have been dramatic increases in imports of particular products. Imports of pullovers in January and February compared with a year ago surged by 893 per cent. Some 16,000 UK textiles jobs have been lost over the year to April, while UK clothes prices are falling almost 6 per cent a year
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