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| Sunday, 27 February 2005 |
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EU trade warning to China by Tobias Buck in Brussels and Raphael Minder in Strasbourg Increased curbs on Chinese exports of textiles and clothing, following the removal of global trade-restricting quotas this year, were on Wednesday demanded by Peter Mandelson, the European Union trade commissioner. "China must trade freely and fairly. If there is a perception that China is reaping the benefits of free trade without meeting the standards of fair trade, there will be a negative response in Europe and elsewhere," Mandelson said before his arrival on his first official visit to China since taking office. He said the growth of Chinese textile exports was a particular worry. "I want to discuss with the Chinese government curbs that they could make to moderate export growth. In December they announced measures [to limit that growth]. It is too early to say what those policies have achieved, but the signs so far are that they are too modest." Mandelson also raised the possibility of using the "special safeguard mechanism" to put a brake on Chinese textile imports into Europe, which have risen sharply as quotas have been phased out over recent years. Negotiated during China's accession process to the World Trade Organisation, this mechanism allows countries unilaterally to restrict textile imports from China. It has never been used by the EU and any move to apply the mechanism would be viewed with hostility by Beijing. "It is quite possible that Europe will use special safeguards," Mandelson said. Coupled with forceful language on China's lack of protection for intellectual property rights and the need for a bigger Chinese contribution to WTO trade talks, Mandelson's remarks suggest he intends to take a tough line in Beijing. Brussels has in the past been careful to distance itself from the more aggressive stance adopted by some US officials who have been more openly critical of China's trade policies. But in a sign that the Commission is moving towards a more confrontational position, Mandelson insisted that China would not be granted any reprieve in opening its markets and abiding by international trade rules. He said: "There is a view in China that it has already paid heavily to enter the WTO. But WTO membership is not the end of the reform path but just the end of the beginning. China has to work harder to ensure that its own markets are open to international competition on fair and transparent terms." The commissioner cited intellectual property rights as another area of concern, saying: "The laws on China's books are very good but they are not properly enforced." Courtesy: Financial Times |
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