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Import restrictions on textiles harm Europe
(Xinhua)
Updated: 2005-08-19 13:40

The import restrictions on Chinese textiles harm European textile traders, consumers and retailers, a Belgian textile insider complained here in an interview with Xinhua on Thursday.

Since July 12, the European Union (EU) has imposed restrictions on 10 categories of textile goods from China. Consequently, shiploads of sweaters and trousers imported from China have been piled up at a number of European ports and cannot go through the customs because quotas have been exhausted.

"This is a tremendous loss for the European companies," said Hans van Duysen, general manager of Somnis Bedding, a Lokeren-based company manufacturing mattress, pillows and quilts.

"First, the goods were blocked. Most European companies have paid for the goods to the Chinese companies, but they did not see the goods," van Duysen said during the interview.

He cited three more aspects of economic losses for the European side: Local customers will become "victims" for they can not get quality sweaters and trousers at "reasonable prices;" the retailers will lose profits because they have "no goods to sell;" and textile traders will have to suffer the "tremendous logistic cost."

Van Duysen and his assistant roughly calculated the container cost, warning that if a container stays at the port for one month and a half, they might as well throw the clothes into the sea or just "burn them."

On August 9, EU Trade Commissioner Peter Mandelson issued a statement, saying, "Final decisions, including some flexibility on the future management of the quotas will not be taken until early September and will be resolved in agreement with the Chinese authorities."

The severe situation and Mandelson's statement have made some senior European officials upset.

Earlier this week, trade ministers from Scandinavian countries wrote to Mandelson, asking for a quick solution to the problem.

On Thursday, trade ministers from the Netherlands, Denmark, Sweden and Finland jointly published an article in the British newspaper Financial Times, calling on the EU for an immediate solution and suggesting that the "best solution" is to "renounce protective trade measures."

"What a loss of face. Europeans have to check how many goods are on ships, how many goods are blocked at the moment by their own restrictions," van Duysen said.

"It is sarcastic that one month ago the Europeans went to Shanghai to demand the quotas, and one month later they will go to China again, and say, well, we have problems with the quotas, we want to discuss again the issue. It's a shame for Europe," he stressed.

Just as the four ministers believe, "reintroduction of import quotas" would not "save Europe's remaining textile industry," van Duysen said, adding that the restrictions only protect "turtle" companies in Europe, which are not prepared for international competition.

He said China has spent 20 years on the World Trade Organization (WTO) talks, and European companies have 20 years to prepare for the competition.

Actually, quite a lot of European textile companies have foreseen the coming competition and some of them have even taken full advantage of China's WTO entry and have set up manufacturing bases in China, he noted.

Van Duysen accused the "unprepared" companies of merely "crying" and employing lobby groups in Brussels to seek restrictions from the EU.

The restrictions do harm to the majority of European companies and customers, and they also harm the interests of Chinese workers, he stressed.

"Before they go to China, they look down upon China. After they go to Shanghai, Guangdong and Beijing, they cry 'yellow danger'," van Duysen said in indignation.

To solve the current crisis, he believed, some companies probably would ask Mandelson to move forward some of the quotas for 2006, but in that case there would be less quotas for next year.

All in all, van Duysen said, a complete elimination of textile trade restrictions is the best way to solve the crisis.

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