China and the European Union are expected to reach a deal soon to monitor China's textile exports to the European market next year, but the details of the plan are yet to be ironed out.
The European Union said a "double-check system" will track the issue of licenses to Chinese exporters and monitor goods imported to the European economic bloc in 2008, when the EU removes quota restrictions on Chinese textiles and clothing in line with an agreement reached in 2005. The plan is supported by the majority of the EU's 27 members.
"I welcome this further step in the cooperation between the EU and China in ensuring a smooth transition to free trade in textiles," European Trade Commissioner Peter Mandelson said in a statement, adding that the system would provide predictability for EU producers and traders.
The double-check system will cover eight of the 10 categories of textiles subject to import quotas, including T-shirts, pullovers, men's trousers and bras.
The two sides have agreed to monitor bilateral textile trade next year, but the details are still under discussion, said Sun Huaibin, a spokesman for the China National Textile and Apparel Industry Council.
But some European retailers and manufacturers would prefer to extend the import quotas and complain that the new system will be cumbersome.
Industry insiders said the country's textile exports to the European Union are not expected to see a sharp increase next year. China's textile exports to the EU increased only 5.5 percent in the first five months this year from a year earlier.
When quotas on textile trade were removed globally in 2005, China saw robust growth in textile and garment exports to some major markets, including the United States and the European Union. This sparked fears among foreign competitors that made-in-China textile products could hurt their local industries.
After months of talks, China reached agreements with the two economies on capping the growth rate of the textile trade. US quotas for Chinese imports are due to expire at the end of 2008.
