CHINA and the European Union have finally reached agreement after marathon talks that will free up tens of millions of Chinese-made textiles stuck at European ports after fresh textile quotas were brought in.
Under the latest deal that was signed by China's Minister of Commerce Bo Xilai and EU Trade Commissioner Peter Mandelson in Beijing, half the textiles stranded in customs warehouses will be released unconditionally, while the remainder will count against next year's quotas.
The compromise solution will mean that retailers will no longer have to potentially face empty shelves in their stores in the run-up to Christmas despite European clothing manufacturers' fears that a flood of cheap Chinese-made textiles on the market will force them out of business and result in hefty job losses.
Xinhua News Agency cited Mr Bo as saying that China neither made any mistakes nor does it not shoulder any of the blame for the textile quota dispute, adding that the two trading blocks regard each other as "strategic co-operative partners".
"But considering the interests of EU importers and retailers, (we) decided to offer a helping hand to reduce the losses of both sides," China's Commerce Minister said, describing the deal as a win-win situation for both China and the European Union.
Chinese Premier Wen Jiabao has called the agreement "fair and acceptable to both sides" according to a report by BBC World.
The negotiations between the Chinese Commerce Minister and the EU Trade Commissioner to release up to 80 million Chinese textiles from European ports began on Sunday and carried on into the night on Monday ahead of a summit between Chinese President Hu Jintao and British Prime Minister Tony Blair. The agreement is subject to ( ) approval by the 25 EU member states, which are reported to be divided over the acrimonious issue.
The EU slapped fresh quotas in June on Chinese garments in an effort to ward off an imminent surge in Chinese imports following the abolition of decades-long global textile quotas in January.
Company Info
China, EU textiles deal to free up garments stuck at ports