WRITTEN QUESTION No. 3611/97 by Elly PLOOIJ-VAN GORSEL to the Commission. Textile trade with China
Date: 1997-11-13
Institutions: European Parliament, PLOOIJ-VAN GORSEL
Subjects: China, World Trade Organisation, accession to an agreement, developing countries, dominant position, preferential agreement, tariff preference, textile industry













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91997E3611

WRITTEN QUESTION No. 3611/97 by Elly PLOOIJ-VAN GORSEL to the Commission. Textile trade with China  


Official Journal C 174 , 08/06/1998 P. 0087 





WRITTEN QUESTION E-3611/97 by Elly Plooij-van Gorsel (ELDR) to the Commission (13 November 1997)Subject: Textile trade with ChinaChina accounts for 16% of world trade in textiles. As a trading partner, China has a poor record of compliance with agreements, and it has proved difficult to enforce them.In view of China's strong position on textile markets, to what extent does the Commission consider it fair towards European industry to grant China the status of a developing country, with the associated preferential trading conditions?In conjunction with this, what is the Commission's view of the way in which China should be admitted to the WTO, either at once or with a transition period? Could phased admission provide a significant means of bringing pressure to bear with the aim of securing compliance with agreements on reform?To what extent are the negotiations with China likely to bring about an effective reduction in existing non-tariff barriers? How will the Commission ensure that tariff barriers which are prohibited under the WTO are not replaced with non-tariff barriers?Answer given by Sir Leon Brittan on behalf of the Commission (16 December 1997)The negotiations on China's accession to the World trade organisation (WTO) are still in an important phase. They cover a broad field, varying from commitments on tariff levels to the abolition of a very large number of non-tariff barriers as well as the implementation of legal rules for intellectual property and the opening of the services sector. The implementation of its obligations as a result of its WTO membership will bring a new wave of liberalisation in China and push towards further reforms.According to WTO provisions, valid for all countries, China will implement its liberalisation obligations step by step, with various transition periods.The Commission - supported by the Member States - is of the opinion that WTO membership is a way to encourage China towards further reforms, the establishment of a market economy and the fulfilment of its international commitments. It can be noted that, since 1995, the WTO has an effective dispute settlement mechanism, which enables it to exert pressure for the implementation of agreements.Regarding the preferential tariffs for textile import into the Community, they were indeed granted to China, but by the Member States autonomously, without any link with China's accession to the WTO. For the rest, Chinese textiles import receive the same treatment as from the other countries, which means that quantitative restrictions are still in force for import into the Community. These will be liberalised step by step in the framework of the WTO commitments.The Commission feels that the Chinese government carried out significant economic reforms these past years. Nevertheless, it appears that further measures are necessary to ensure a stable integration of China into the world economy and to open up this market to the goods and services of other countries, according to the terms of the world trade system. In the Commission's opinion, these goals will effectively be supported by the WTO membership.