WRITTEN QUESTION E-1713/00 by Paul Rübig (PPE-DE) to the Commission. Conditions for China's accession to the WTO in the textiles sector.
Date: 2000-05-29
Institutions: European Parliament, Provisional data
Subjects: China, World Trade Organisation, agreement (EU), customs duties, export policy, import policy, market access, tariff quota, textile industry

13.3.2001

EN

Official Journal of the European Communities

C 81 E/77

(2001/C 81 E/093)

WRITTEN QUESTION E-1710/00

by Neil MacCormick (Verts/ALE) to the Commission

(29 May 2000)

Subject: Arms exports

Is the Commission aware that concern has been expressed within the Union about evasion of restraints on
arms exports to countries such as Sudan? The problem concerns licensing of arms manufacture to third
country producers. Is the Commission taking steps to keep itself informed about this risk and to forestall
it? If not, why not?

Answer given by Mr Patten on behalf of the Commission

(13 July 2000)

Member States have up to now, on the basis of Article 296 (ex-Article 223) of the EC Treaty exempted
trade in arms from the scope of application of treaty rules. Therefore, the Commission possesses neither
the authority nor the means to monitor the export of armaments or licensing of arms production.

Arms trade is currently dealt with in the context of the Common Foreign and Security Policy (CFSP), to
which the Commission is fully associated. Under the CFSP the Union adopted a Code of Conduct on arms
exports in June 1998 the criteria of which the Member States are pledged to respect.

The Commission is conscious of the concerns expressed by the Honourable Member regarding licensed
production agreements in third countries. In fact, such exports could at times amount to exports in
disguise to countries where existing export controls would normally not allow them to take place.
However, at this time, on the basis of the Union Code of Conduct on arms exports, it is export licences
rather than licensed production agreements which are precluded.

(2001/C 81 E/094)

WRITTEN QUESTION E-1713/00

by Paul R(cid:252)big (PPE-DE) to the Commission

(29 May 2000)

Subject: Conditions for China(cid:146)s accession to the WTO in the textiles sector

The accession of China to the WTO will have fundamental consequences for the European textile industry.
China is currently one of the biggest exporters of textiles with a big and rapidly growing market share in
the EU. According to various reports, it is China(cid:146)s strategy to enlarge its textile production capacity in the
next few years and make a massive investment to modernise this industry and to increase Chinese textiles
exports to the EU by more than 200 % in the next few years. There are plans to employ 15 million people
in the textile industry and 7,6 million in the Chinese clothing industry. The industry would then be
employing 22,4 million people, ten times more than in the EU!

The import quotas of the EU vis-(cid:224)-vis China are among those which are very intensively used (cid:129) some of
them to 100 %. This means that the abolition of all quotas in 2005 will lead to a massive increase in
Chinese imports.

The EU textile industry therefore has a vital interest in securing a fair and open access to the Chinese
market. Trade in textiles must not be a one-way street from Asia to Europe.

To ensure this, the textile industry needs:

(cid:129) reciprocity of market access: China has to lower its tariffs and bring them into line with the EU level
by 2005. Furthermore, China has to remove all its non-tariff barriers, of which it has quite a number
in the textile sector,

C 81 E/78

Official Journal of the European Communities

EN

13.3.2001

(cid:129) China has to introduce effective legislation for the protection of textile designs. These are a major asset

of the European textile industry.

Will the Commission defend these demands in the negotiations with China?

Answer given by Mr Lamy on behalf of the Commission

(29 June 2000)

The negotiations between the Community and China concerning the terms of China(cid:146)s accession to the
World Trade Organisation (WTO) were initialled in Beijing on 19 May 2000. The results have already been
presented to the Council and the Parliament.

As the Honourable Member states, China is the largest supplier (in value) of textiles and clothing to the
Community. China(cid:146)s accession to the WTO will mean that China will benefit from the WTO Agreement
on textiles and clothing, in particular in terms of increased growth factors for the existing quotas and the
phase out for all textiles quotas with WTO members on 1 January 2005, subject to such terms as may be
agreed in the WTO working party on China(cid:146)s accession for example concerning safeguard provisions in
the sector. China(cid:146)s accession to the WTO will therefore bring increased competition on the European
market both for European industry and, particularly at lower price ranges, as between the main supplier
countries in the sector such as, for example, China and India.

The Community(cid:146)s main priority for the sector in the negotiations on China(cid:146)s WTO accession was improved
market access. As a result China agreed on a number of matters that will improve access to the Chinese
market for European exporters in the sector. China will greatly reduce tariffs. These will be reduced
progressively over the period to 2005. China(cid:146)s tariff offer in the sector was reduced further in the final
round of negotiations. While the rates are somewhat higher than those of the Community and a limited
number of tariffs peaks remain, the offer represents an average rate on industrial textiles and clothing
products of 11,5 % (down from 27,3 %). All quotas maintained by China on imports of raw materials will
be removed. China has agreed to remove the state monopoly on sales of exports of silk thus allowing
European industry direct access to supplies.

In addition to the above matters, which are subject to transitional periods, the sector will benefit from the
application of general WTO rules and disciplines, including those relating to intellectual property, and
from other concessions made to the Community, for example concerning distribution rights, which will
also facilitate exports to China. Moreover, as a WTO member China could become an important ally of the
Community in its attempts to improve access to markets of other countries which, despite their WTO
membership, continue to apply prohibitive tariffs in this sector.

The Commission agrees with the Honourable Member that textiles should not be a (cid:145)one-way street(cid:146). The
concessions made by China to the Community will be included, together with concessions made to other
WTO members,
in China(cid:146)s protocol of accession to the WTO. The overall result should create a
considerable improvement in market access opportunities for the European textiles and clothing industry
in China.

(2001/C 81 E/095)

WRITTEN QUESTION E-1715/00

by Rosa MiguØlez Ramos (PSE) to the Commission

Subject: Difficulties experienced by the Community fleet in Brazil

(29 May 2000)

The Spanish national deep sea longliners(cid:146) association (ANAPA) claims that Brazil is breaking World Trade
Organisation rules by refusing to allow Community vessels to unload in its ports or to enter its ports, even
to take on supplies or to seek medical assistance. Using ports in other countries costs the Community fleet
an additional € 12 million.

What are the Commission(cid:146)s views on these measures? What steps does it intend to take to put an end to
such malpractice?