Presenting figures on 24 April 2005, on dramatic increases in textile imports, Mr Mandelson said he would initially seek a voluntary agreement with China, but the EU investigation into nine categories of clothing from China could lead to the reintroduction of tariffs within months. The United States has already put sanctions into place.
A 40-year-old World Trade Organisation (WTO) agreement on textiles and clothing which set quotas limiting the trade worldwide ended in January 2005. Since then, cheap Chinese clothing products have flooded the EU and US markets, causing grave concern for jobs. The industry has called for government help in the face of an estimated 500% rise in imports of some goods, leading to a drop in prices of 26% for goods such as T-shirts.
WTO Director Supachai Panitchpakdi said that governments should not be hasty. They had not prepared for the ending of the sanctions agreement and should therefore hold off from protectionist measures for at least a year to allow the market to settle.
