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          EU ups textile pressure on China
          (Agencies)
          Updated: 2005-04-25 14:59

          EU trade chief Peter Mandelson stepped up pressure on China to curb a "ruinous" surge in textile exports, urging it to take action or face possible EU steps to protect Europe's clothing industry.

          Mandelson made the call as he gave details of the surge in Chinese imports since the end of a quota system in January, and confirmed plans to investigate specific areas where the European Union (EU) might impose import ceilings.


          A worker works at a textile factory in Xiangfan, Central China's Hubei Province in this picture taken on April 22, 2005. [newsphoto]

          "If justified by the facts I will use the safeguards," he said, referring to measures which allow the 25-member bloc to take action if imports threaten European producers.

          "I urge China to take a fresh look at the measures they have put in place already, and explore whether they cannot do more," said Mandelson, who is to travel to Hong Kong on Monday.

          Mandelson confirmed he will recommend this week that the European Commission launch formal probes into the surge in textile imports, with a view to possible safeguard measures.

          The EU trade commissioner said the investigations should take at most 60 days, saying he hopes to have results by June and that, if necessary, the EU will impose limits on Chinese imports shortly after that.

          Speaking before talks with EU trade ministers in Luxembourg later Sunday, he listed nine types of textiles in which the surge in imports is of enough concern to justify looking at the option of imposing limits.

          These included T-shirts, pullovers, mens' trousers, blouses, stockings and socks, as well as women's overcoats, bras and flax yarn.

          The investigations will mark the first step along a path that could lead to limits on textile imports from China, where low costs have given producers a huge competitive advantage on the world market since January 1.

          Beijing has warned that its ties with the EU could suffer if Brussels goes ahead with limits, while the EU's textile trade, backed by producer countries such as France and Italy, has been lobbying hard for immediate action.

          Mandelson said that imports of textiles had increased by up to 534 percent in some cases in the first three months of this year, against a guideline increase of a maximum 100 percent.

          But he insisted that any EU action would be "proportionate," saying: "Chinese exports should of course be allowed to grow at a normal speed following the removal of quotas.

          "But we must also extend protection to European industry as it is faced with a ruinous surge of unprecedented proportion," he said. "Europe cannot stand by and watch its industry disappear."

          He stressed that he was being careful not to allow tension over textile exports to cloud Europe's longer-term ties with the emerging Chinese economic giant.

          "I'm very mindful of that long term responsibility that I have and intend to observe it," he said.

          French industry minister Patrick Devedjian said in a newspaper interview Sunday that the surge in cheap Chinese clothing could cost 7,000 jobs in France this year.

          "It is a very serious situation. It is very serious for our industries which make these products and have been in difficulty for several years," he told Le Journal de Dimanche.

          Mandelson agreed: "We're talking about people's livelihoods, we're talking about their jobs, their businesses," he said, but added: "The measures I take will be considered and proportionate."



           
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