EU to probe massive surge in Chinese textile imports
New Delhi: The European Union (EU) Trade Commissioner, Peter Mandelson, has announced that he will ask the European Commission to authorise him to launch investigations into nine categories of Chinese textile exports to the EU in the light of a sharp surge in imports from China during the first quarter of 2005.

In all these categories, import volumes for Chinese textiles have risen above the `alert levels' defined by the guidelines published by the Commission on April 6, 2005, an EU statement said in Brussels on Monday.

The Commission will now conduct a rapid investigation (maximum two months) to determine if market disruption has occurred and whether the EU should impose special safeguard measures. In parallel, it will launch immediate consultations with China in an attempt to find a satisfactory solution.

Peter Mandelson said: "Member-States have finally made available the import statistics for the first quarter of 2005. In several categories of textile and clothing imports they do give cause for serious concern. Based on these facts, Europe cannot stand by and watch its industry disappear. Our investigation will enable me to decide whether the EU should introduce safeguard measures.

Chinese exports should, of course, be allowed to grow at a normal speed following the removal of quotas. But we must also extend protection to European industry if it is faced with a ruinous surge of unprecedented proportions".

The product categories to be covered by the investigation are T-shirts, pullovers, blouses, stockings and socks, men's trousers, women's overcoats, brassieres, flax or ramie yarn and woven fabrics flax.
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Bush administration pushes for CAFTA
Washington DC: The administration of US President George W Bush is pushing for a new trade pact designed to eliminate trade barriers with six Latin American countries, and the administration is confident that it will get the necessary votes from Congress to pass the proposed Central American Free Trade Agreement (CAFTA).

The CAFTA pact has faced significant opposition from Democrats, who believe it doesn't protect American workers from unfair competition from low-wage countries.

Lawmakers who represent districts that are home to textile and sugar producers in the US are also opposing the congressional bill. They claim that there would be job losses if the proposed pact is passed. But the administration contends that CAFTA could help boost Central America by eliminating all US tariffs of clothing products being shipped to the United States and help them compete against China's more efficient textile industry.

Despite CAFTA's outcome, Gutierrez still considers China to be a "very important trading partner" but stressed that the Asian country must comply to negotiated agreements.

The countries included in CAFTA are Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua.
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