# CE2004084EN.01093601.xml

| 3.4.2004 | EN | Official Journal of the European Union | CE 84/936 |
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3.4.2004

EN

Official Journal of the European Union

CE 84/936

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(2004/C 84 E/1034)

WRITTEN QUESTION E-1057/04

by María Sornosa Martínez (PSE) to the Commission

(5 April 2004)

Subject:   Implications for the Community textile sector of certain trade practices on the part of China

Subject:

The Spanish Intertextile Council has formally requested the World Trade Organisation to establish a three-year extension to prevent the Agreement on Textiles and Clothing from coming into force until 2007; this Agreement will remove all quotas, and will bring about the total liberalisation of the sector. The main reason for the Spanish request is the existence of certain ‘unfair’ trading practices on the part of various countries involved in the Agreement, such as China.

Other countries, including the USA, Turkey and Mexico, have joined Spain in signing the ‘Istanbul Declaration’, stating their fear that China will globally dominate the textile and clothes sector, if it continues with these practices, deemed illegal by the international community.

Does the Commission have further information concerning these facts?

What measures does the Commission intend to take to defend the European textiles sector against China's ‘unfair’ trading practices?

Answer given by Mr Lamy on behalf of the Commission

(30 April 2004)

(30 April 2004)

The Commission is aware of the contents of the so-called ‘Istanbul Declaration’ whereby United States, Mexican and Turkish industry associations called for an extension of the validity of the Agreement on Textiles of Clothing (ATC) for a further period of two years beyond its expiry date at the end of 2004. On 4 May 2003 a letter in this sense was forwarded to the World Trade Organisation (WTO) Director General. Furthermore, it is also known that the Italian and Spanish industry are supportive of this initiative. Some developing countries, notably sub-Saharan, also appear to be supportive of an extension of the validity of the ATC.

The Commission wishes to point out that the ATC constituted a major result of the Uruguay Round negotiations in favour of developing countries and that it has no intention not to abide by this carefully negotiated result. In fact, the EU, United States, Canada and Japan have already notified the WTO Textiles Monitoring Body that, in conformity with the provisions of the ATC, restrictions on imports of textiles and clothing from WTO members will be eliminated on schedule by the end of 2004. Any modification to the contents of the ATC, and in particular its duration or extension, would have to be agreed upon by WTO members. To the Commission's knowledge, no WTO members have to date put forward such a proposal.

In response to the Honourable Member's comments about unfair competition, there is the possibility of anti-dumping, anti-subsidy or safeguard measures, in response to a complaint from European industry, when the necessary conditions are fulfilled.

In addition there are specific modalities which apply to China and according to which safeguard measures may be taken against imports from that country beyond the duration of the ATC. Such specific measures are authorized under China's Protocol of Accession to the WTO.

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