EU warns of new China textile 'disaster'
(AFP)
Updated: 2005-09-12 08:47

Last week's Beijing accord, struck just in time to avoid clouding an EU-China summit at which British Prime Tony Blair led the EU presidency, finally ended the deadlock, and was approved by by EU states a few days later.

But some Chinese textile manufacturers have already started worrying about their future exports, according to the Xinhua News Agency.

"The export quotas for the second half of the year have almost been used up and if we start using next year's quotas, we will face greater pressure next year," said Zhu Hongjun, a senior manager with Peiluocheng Group in Zhejiang. The question of how to deal with the logjam divided EU members, roughly between southern European countries whose manufacturers fear the flood of cheap imports and northern countries where retailers want fresh stocks.

British finance minister Gordon Brown entered the debate Friday, slamming the "new protectionism" shown by the standoff, as well as the "old European social model" behind it -- a clear reference to states like France and Germany.

The dispute was a "wake-up call" for those within the EU who preferred to ignore the rapid growth of China and other Asian economies, Brown said in an article for Friday's Financial Times newspaper.

"The new protectionism that we are seeing, however well intentioned, is a wake-up call because it is the last stand from those who believe we can stop the clock, postpone or prevent inevitable change," he wrote.

The EU's Mandelson -- who has been criticized for his handling of a number of key dossiers since he took office in the Brussels post last November -- won plaudits from many for last week's Beijing accord.

But for EU retailers, everything depends on how things pan out in the months to come.

"He's got himself rather nicely out of a mess, but the agreement which he has managed to negotiate with the Chinese now is not by any perfect for EU retailers and importers," said the FTA's Newman.