Notice of termination of the safeguard investigation concerning imports of certain textile products originating in the People's Republic of China
Date: 2005-07-09
Institutions: European Commission
Subjects: China, import, import policy, originating product, quantitative restriction, textile product

9.7.2005

EN

Official Journal of the European Union

C 170/9

Notice of termination of the safeguard investigation concerning imports of certain textile products
originating in the People's Republic of China

(2005/C 170/03)

1. INTRODUCTION

Journal of

On 29 April 2005, by a Notice of Initiation published in the
the European Union (1),
the Commission
Official
opened, on its own initiative, a safeguard investigation on
imports into the Community of nine product categories origin-
ating in the People's Republic of China (‘PRC’), pursuant to
Article 10a of Council Regulation (EEC) No 3030/93 (2).

On 27 May 2005, the Commission requested formal consulta-
tions to the PRC in accordance with paragraph 242 of the
Working Party Report of the accession of the PRC to the WTO
and Article 10a of Council Regulation (EEC) No 3030/93 in
respect of product category 4 (T-shirts) and category 115 (flax
yarn). The Commission had early indications that disorderly
development of trade, owing to market disruption, occurred for
these products.

2. TERMINATION OF SAFEGUARD INVESTIGATION

Following the consultations held in accordance with paragraph
242 of the Working Party Report of the accession of the PRC
to the WTO, on 10 June 2005, the Commission and the autho-
rities of the PRC agreed a Memorandum of Understanding
concerning the quantitative limits for imports originating in the
PRC into the Community regarding ten product categories, six
of which are subject to the current investigation: category 4 (T-
shirts), category 5 (Pullovers), category 6 (trousers), category 7
(blouses), category 31 (Brassieres) and category 115 (Flax or
ramie yarn). As a result of this Memorandum of Understanding,
Council Regulation (EEC) No 3030/93 has been amended by
Commission Regulation (EC) No 1084/2005 (3)
and the
ongoing safeguard investigation for the covered products has
to be terminated.

In respect of the remaining three product categories under
investigation, namely category 12 (Stockings and socks), cate-
gory 15 (Women's overcoats) and category 117 (woven fabrics
flax), which have not been included in the Memorandum of
Understanding agreed with the PRC, the Commission consid-
ered that, despite the increase in imports originating in the
PRC, the overall situation of the Community producers does
not call for the introduction of measures pursuant to paragraph
242 of the Working Party Report of the Accession of the PRC
to the WTO (4) and Article 10a of Council Regulation (EEC) No
3030/93 for the reasons outlined below.

when compared to the same period in 2004, the growth rate
of imports originating in the PRC is abating. The growth of
305 % in the first quarter of 2005 went down to 246 % in the
period January-April 2005.

As far as the situation of the Community producers manufac-
turing these products is concerned, it appears that both produc-
tion and employment have remained more or less stable in the
first quarter of 2005 when compared to the same period in
2004, even if there are indications of a drop in orders.

Category 15 (women overcoats)

While imports originating in the PRC of products falling under
category 15 increased significantly in the first quarter of 2005
when compared to the same period in 2004, the alert level, as
defined in the indicative Guidelines on the application of
Article 10a of Council Regulation (EEC) No 3030/93, was not
reached at the end of the first four months of 2005. Further-
more, the growth rate of imports originating in the PRC is
abating. The growth of 181 % in the first quarter of 2005 went
down to 158 % in the period January-April 2005.

The increase in imports originating in the PRC, although large
in percentage, was entirely absorbed by an increase in apparent
consumption in the Community. In absolute terms,
imports
originating in the PRC increased by 9 million units in the first
quarter of 2005 when compared to the same period in 2004
while the apparent Community consumption increased by over
10 million units in the same period.

As far as the situation of the Community producers manufac-
turing these products is concerned,
it appears that, while
production has dropped slightly in the first quarter of 2005
when compared to the same period in 2004, profit levels of
the Community producers manufacturing these products have
remained stable and positive and no exceptional drop in
employment could be noticed.

Category 12 (stockings and socks)

Category 117 (woven fabrics flax)

While imports originating in the PRC of products falling under
category 12 increased significantly in the first quarter of 2005

(1) OJ C 104, 29.4.2005, p. 21.
(2) OJ L 275, 8.11.1993, p. 3. Regulation as last amended by Commis-
sion Regulation (EC) No 930/2005 (OJ L 162, 23.6.2005, p. 1).

(3) OJ L 177, 9.7.2005, p. 19.
(4) Document WT/MIN(01)3 of 10 November 2001.

While imports originating in the PRC of products falling under
category 117 increased significantly in the first quarter of 2005
when compared to the same period in 2004, this increase (ca.
2 300 tonnes) has been largely made at the expense of expor-
ters in other third countries.
Indeed the overall growth of
imports into the Community only amounted to ca. 700 tonnes.

C 170/10

EN

Official Journal of the European Union

9.7.2005

While the Chinese average unit prices are lower than those of
other main suppliers, they have remained stable in the first
quarter of 2005 when compared to the same period in 2004.

As far as the situation of the Community producers manufac-
turing these products is concerned,
it appears that, while
production has dropped significantly in the first quarter of
2005 when compared to the same period in 2004 (a drop of
around 4 000 tonnes), it is not apparent that this drop is solely
due to the increase in imports originating in the PRC.

3. CONCLUSION

For the reasons set out above the safeguard investigation
concerning imports of certain textile products originating in
the People's Republic of China initiated on 29 April 2005 is
hereby terminated.