EN Official Journal of the European Union CE 88/474

(2004/C 88 E/0486)

WRITTEN QUESTION E-3674/03

by Ilda Figueiredo (GUE/NGL) to the Commission

(9 December 2003)

Subject: Textile and clothing industry

Protectionist measures have been adopted by the US against imports of various articles from China, notably knitwear and brassieres, following complaints from professional organisations representing the US textile industry.

Meanwhile, in the EU 2002 saw a considerable increase in imports of Chinese textile and clothing products, especially those which have been the object of liberalisation. The Portuguese Textile and Clothing Association states that, by way of example, China's market share of anoraks and tracksuits, which stood at less than 20 % in 2001, rose in 2002 to over 50 %, leading to a fall in price levels of some 40 %.

The protectionist measures by the US could lead to a diversion of trade to Europe, bringing increased pressure to bear on the EU market and endangering the industries of Member States such as Portugal, in areas where the textile and clothing industry is the dominant economic activity.

Can the Commission state what action it is taking to monitor this situation and what measures it intends to take for the protection of the industry, employment and regional development in those parts of Portugal where these sectors are of vital importance, such as the Vale do Ave, the Vale do Câvado and the Beiras?

Answer given by Mr Lamy on behalf of the Commission

(9 February 2004)

The Commission is fully aware of the concerns expressed by the Honourable Member regarding the Chinese export potential and the results already achieved in increasing the Chinese share in the EU market place. The growth of Chinese exports in value has out-paced that of any other country. Its share of EU imports has increased from 6,6 % to 11,5 % for textiles between 1994 and the first nine months of 2003, from 13,8 % to 19,3 % in clothing, and from 11,4 % to 17,7 % in textiles and clothing over the same period, China always being the largest EU supplier.

Apart from the general World Trade Organisation (WTO) safeguard provisions in force, which are available to counter risk of market disruption, China is also subject to specific safeguard measures which may be applied according to China's protocol of accession to the WTO. Indeed, the United States (US) took measures under the specific textiles safeguard, with effect from 24 December 2003, against Chinese exports of three products, namely knitted fabric, dressing gowns and bathrobes, and bras. Obviously a risk of diversion of trade may exist, but the US measures may only have limited effect, not only because there is little US production of the goods concerned. Such measures will not imply a cutback on Chinese exports to the US but rather a brake on their growth, which in itself will limit risks of trade diversion. As regards impact on the EU, there does not appear to be a significant trade deflection risk for knitted fabrics or for bras which are still subject to quotas for most of its types. The impact for dressing gowns may be higher as there are no EU quotas, and although China is already the largest EU supplier, such EU imports have already been growing considerably over the past years.

The Commission shares the view that it will be necessary to carefully monitor the impact of the US measures, including the risk of diversion. However, the EU may ultimately also have recourse to trade remedies, in conformity with the WTO agreements and the provisions of the China Protocol of Accession to the WTO.