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The EU-China agreement imposes no restrictions on imports for 2008 but it commits both sides to cooperate in ensuring a smooth transition when the final import restrictions end at the end of 2007. At their Ministerial meeting on June 12,2007, EU Trade Commissioner Peter Mandelson told Chinese commerce Minister Bo that the EU expects China to play its part in ensuring a stable transition in 2008. China agreed to set up a working group on the issue to co-ordinate joint action.

It is said that the European Commission will closely monitor developments in textile and clothing imports from China in 2008. And importers, retailers and textile producers would be urged by Mr Mandelson to work with Member States and do what they can to ensure a smooth and problem-free transition.

Following the final stage of liberalisation of global trade in textiles and clothing on January 1, 2005, textile and clothing exports to Europe from China – which had joined the World Trade Organisation (WTO) in 2001 – experienced a very rapid surge, accompanied by rapid drops in unit prices. For some categories of imports the increase in exports, in a matter of months, was 100% or more.


The EU and China negotiated an agreement that would cap growth levels of imports from China in ten categories of textiles and clothing, at agreed levels, each year until the end of 2007. These annual allowances would be subject to an annual increase of up to 12.5%.

Source:Industry Website