EU heads towards deal over Chinese clothing

A dispute that has prevented more than 80 million Chinese t-shirts, jumpers and other clothing from entering Europe appeared close to resolution yesterday as opposition to an agreement faded away.

A day after European Trade Commissioner Peter Mandelson struck a deal with China to share the pain of the import surge, textile-producing EU members like France and Italy said they were now ready to back the deal.

"This accord shows the Europeans and the Chinese authorities know how to be pragmatic to solve the blockages which would have caused financial difficulties for French firms this year," Trade Minister Christine Lagarde said in a statement.

Italian Deputy Industry Minister Adolfo Urso said Rome had given Mr Mandelson the green light for the agreement.

Member states were discussing details of the accord and trade diplomats said they expected a formal vote today that could pave the way for the release of the blocked goods to start next week.

The clothing imports began to pile up in July after quotas agreed in June were filled quickly, raising concerns about shortages in shops and higher prices for consumers.

Under pressure from countries with big retail sectors to free up the goods, the European Commission struggled to overcome opposition from textile producing states and let in more Chinese goods without Beijing lowering its export quotas for next year.

Under the deal Mr Mandelson struck in Beijing, half the excess goods will be deducted from China's quota for exports to the EU in 2006 and the rest will be added to its 2005 quota.

An EU Commission spokesman confirmed a deal looked likely.

"The agreement with China is still subject to approval by member states. The first signals we have received from member states appear to be positive but member states must have proper time to study and absorb the agreement," she said.

"We expect to complete the process quickly next week to put it into effect," she told a daily Commission media briefing.

A French diplomat said France had proposed a declaration spelling out the need for close monitoring of the flow of Chinese clothing to Europe.

Earlier yesterday, Mr Mandelson urged member states to approve the deal. "I am confident because the initial discussions have indicated that member states are giving a warm welcome (to the agreement)," he told BBC Radio.