WRITTEN QUESTION E-2758/99 by Concepció Ferrer (PPE-DE) to the Commission. China's accession to the WTO.
Date: 2000-01-18
Institutions: European Parliament, Provisional data
Subjects: China, World Trade Organisation, accession to an agreement, clothing industry, economic consequence, leather industry, textile industry, trade agreement (EU)

C 303 E/106

Official Journal of the European Communities

EN

24.10.2000

Answer given by Mr Liikanen on behalf of the Commission

(25 February 2000)

The action plan to promote the spirit of enterprise and competitiveness approved by the Member States on
29 April 1999 does indeed state that the Commission will report on the progress made as a matter of
routine.

Since the Commission and Member States are in the middle of conducting this exercise the Commission
will not be in a position to put forward an initial report before the Council that is to be held under the
French Presidency in late 2000. It would thus be premature to carry out an initial assessment. Nevertheless,
the Commission is in the process of expanding bilateral contacts in cooperation with the various Member
States in order to ensure that the measures adopted are properly carried out.

(2000/C 303 E/102)

WRITTEN QUESTION E-2758/99

by Concepci(cid:243) Ferrer (PPE-DE) to the Commission

(18 January 2000)

Subject: China(cid:146)s accession to the WTO

A bilateral agreement was recently reached between the United States and China on the conditions for
China(cid:146)s accession to the WTO. In view of the impact which that agreement may have on the European
textile and garment sectors, bearing in mind that China is the leading exporter of garments and the second
largest exporter of textiles, can the Commission make an assessment of the agreement(cid:146)s impact on the
European textile, garment and leather sectors?

What approach will the Commission take to bilateral negotiations between the European Union and China
with a view to that country(cid:146)s accession to the WTO with regard to the above sectors?

Answer given by Mr Lamy on behalf of the Commission

(9 February 2000)

The agreement reached between the United States and China concerning the latter(cid:146)s accession to the World
trade organisation (WTO) reflects the bilateral position of the two parties. The final terms and conditions
of China(cid:146)s accession will be determined within the WTO, notably in the working party on the protocol of
accession of China.

The Commission(cid:146)s understanding of the United States/China agreement in so far as it relates to the textiles
and clothing sector is that the United States has accorded China the benefits of the WTO agreement on
textiles and clothing ((cid:145)ATC(cid:146)) from the date of accession, including the end date of 1 January 2005 for
integration of all products covered by the ATC. In addition, the United States/China agreement proposes
that for a further period of four years from 1 January 2005 a special safeguard provision will be available
to the United States and other WTO members in respect of imports of textiles and clothing from China.
This safeguard clause closely follows the safeguard provision of the currently applicable United States/
China bilateral textiles agreement.

Broadly speaking, the Commission welcomes agreement between the United States and China as a major
step forward to China(cid:146)s accession to the WTO. However, the agreement deals with China(cid:146)s accession to the
WTO from a United States perspective and does not cover all the priorities of the Community. There
remain areas concerning China(cid:146)s accession to the WTO which need to be resolved between China and the
Community in further bilateral negotiations.

For textiles and clothing China is the largest supplier of the Community subject to quantitative restrictions,
with imports from China running at around € 7 000 million per year. The application of the ATC to
China would bring increased competition not only for European industry but also between exporters of
textiles and clothing to the Community particularly in lower price ranges. China is also a very large
potential market for textile and clothing industry. Exports from the Community to China, however, are in
the region of € 300 million per year. A major factor in this low performance is the lack of openness of the
Chinese market. Therefore the main approach of the Community for the sector will be to ensure that

24.10.2000

EN

Official Journal of the European Communities

C 303 E/107

China(cid:146)s accession to the WTO provides a balanced result in particular by way of a substantial increase in
market access opportunities for Community exports in the sector.

(2000/C 303 E/103)

WRITTEN QUESTION E-2759/99

by Concepci(cid:243) Ferrer (PPE-DE) to the Commission

(18 January 2000)

Subject: Rules of origin in free-trade agreements

Negotiations on the bilateral agreement between the EU and Mexico, which will bring about full liberal-
isation of trade in industrial goods by 2007 and in agricultural goods by 2010, were concluded on
25 November 1999. In concluding the agreement, however, a series of concessions and derogations were
made with regard to the application of Community rules of origin. The European textiles, garment and
footwear industries were firmly opposed to those derogations, given that the export to Mexico of products
considered as being of Community origin under EC rules would still be subject to restrictions while no
such restrictions would apply to Mexican products.

On the same day, the EU-Mercosur and EU-Chile Ministerial Councils officially launched the negotiations
on the signing of new association and trade-liberalisation agreements and entered into a commitment on
the calendar for negotiations, their structure and the methods to be followed.

Can the Commission confirm that, in the case of the negotiations with Mercosur (cid:129) which are of greater
significance than those with Mexico (cid:129) it will take a different approach to that taken with regard to Mexico
and will oppose the adoption of rules of origin which differ from Community rules of origin?

With regard to the Mercosur agreement and possible future free-trade agreements, can the Commission
confirm that there will be no further derogations which would imply a proliferation of rules of origin
tailored to the needs of each of the associated countries, which would create confusion for industry and
run counter to the Community(cid:146)s objective of legislative simplification?

Answer given by Mr Lamy on behalf of the Commission

(21 February 2000)

In November 1999 negotiations of the free trade agreement with Mexico reached a final deal which is (cid:129)
in the view of the Commission (cid:129) well balanced, comprehensive and positive in its overall results for
Community interests. The final approach taken on certain issues during the negotiations with Mexico does
not automatically form a precedent for other negotiations. Each negotiation has its own dynamism and
will have to be assessed on its own merits. As regards the reference to the preferential rule of origin, the
Commission underlines that Mexico has accepted a large majority of Community harmonised rules of
origin. In the case of Mexico, where compromises had to be found, this has always been accompanied by
mechanisms which assure market access for our economic operators.

In the case of the association negotiations with Mercosur the Commission aims to establish a final
agreement that is balanced, comprehensive and forms a single undertaking. Within the framework of the
negotiating directives for these negotiations the Commission has been instructed to negotiate the issue of
rules of origin inspired by the model proposed by the Community for the harmonisation process of
preferential rules of origin applicable to third countries. In the negotiation of a protocol on rules of origin
with Mercosur, the economic interests of the Community in trade relations with this region will be fully
taken into account. At present it is still too early to anticipate the developments of the negotiations with
Mercosur concerning this issue of rules of origin.

take place
The first meeting of
during March or April 2000 in Buenos Aires and will deal with general
issues only. In principle the
biregional negotiations committee, and related technical groups and subgroups, will meet three times a

the Community-Mercosur biregional negotiations committee will