| Author (Person) | Carstens, Karen |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.10, No.23, 24.6.04 |
| Publication Date | 24/06/2004 |
| Content Type | News |
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By Karen Carstens Date: 24/06/04 EUROPEAN textile manufacturers are hoping that a new set of EU recommendations for the sector will stave off some of the side-effects of China gaining full access to the global market in six months' time. But these are unlikely to entail any kind of cash injection beyond boosting research to develop hi-tech products. China now exports to the EU more than 30 times what the EU exports to China in the sector, according to trade association Euratex. And the "Red Dragon" will be granted unlimited access to the global market after the expiration of textile and apparel quotas that protected North American and European industries until 1 January 2005. Representatives of the industry fear the cheaper Chinese textiles would seriously affect the sector, employing some 2.5 million people in the EU. A three-day summit on fair trade in textiles and clothing, sponsored by Turkish and US industry groups, concluded in Brussels on 17 June with an appeal to the World Trade Organization (WTO) to convene an "emergency meeting" and consider reintroducing the quotas for three more years. Industry representatives from Bangladesh, Cambodia, Laos, Madagascar, Mauritius, Mexico, Morocco, Peru, South Africa, Sri Lanka and the United States, as well as nearly a dozen European countries, attended the meeting. "The WTO has a choice. It can do nothing and witness a massive economic catastrophe, or it can take decisive action to ensure that world trade in textiles and clothing is not disrupted," said Jean-François Gribomont, outgoing president of EU industry group Eurocoton. But Anja Lörcher, a trade policy advisor for the free-market oriented Foreign Trade Association, said WTO officials would be "highly unlikely" to change their minds. Euratex decided not to sign-off on the appeal, to avoid sending "wrong signals" before a high-level stakeholders' group convened by the European Commission concludes its work. The EU executive's trade, enterprise and research directorates are due to issue a set of recommendations based on the group's findings on 30 June. Francesco Marchi, economic affairs director at Euratex, said these should foster new hi-tech production processes and research opportunities. EU officials have indicated that no new structural funds would be made available. Lörcher said a "financing fund" is likely to emerge instead which would provide some support for research. The real reason Euratex had not signed up to the appeal, she said, was because many of its member companies were actually well placed to handle the lifting of the quotas. Germany's textile and apparel sector in particular has done remarkably well at reinventing itself, she said, with companies reaping the rewards of savvy investments in new materials and trend-setting designs. Moreover, she added, "the Chinese are not there yet - they are still catching up when it comes to hi-tech materials". Chinese officials in Brussels politely declined to comment on a Euratex awareness-raising campaign - called "Why this Deafening Silence" - launched on Monday (21 June). |
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| Source Link | Link to Main Source http://www.european-voice.com/ |
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| Subject Categories | Business and Industry |
| Countries / Regions | China |
