Brussels, 18/08/2005 (Agence Europe) - As promised by the Swedish minister of trade (EUROPE 9007), several EU countries hostile to Chinese textile import restrictions included in June's Shanghai Agreement - Sweden, Denmark, Finland and the Netherlands - have joined forces to request in an open letter published in the Financial Times on 18 August, a more flexible approach to these restrictions, at the very moment 58 million pullovers and 15 million pairs of trousers are blocked at the EU's borders. In a separate letter from Germany's economics minister, Wolgang Clement, to the European Commissioner for trade Peter Mandelson, Clement underlines the significant damage that these restrictions could cause to German industry and trade.
In their open letter Karien von Gennip, Dutch minister for trade Bendt-Bendtsen, vice-prime minister and minister for the Danish economy, Thomas Östros, Swedish minister for trade and industry, and Paula Lehtomäki, Finnish minister for trade declared, “Shiploads of sweaters are piling up on Europe's doorstep, while European retailers and their customers are facing a 'sweater buying season' with far less choice than usual. Scores of European trading companies are facing bankruptcy or severe financial losses. Many jobs are likely to be lost”. The ministers added that “Such are the consequences of the import restrictions on a number of Chinese textile products that came into effect on July 12. More precisely, they are consequences of the way in which these restrictions were introduced without proper regard for the realities of modern commerce”. They also explain that, “More and more European companies are heavily involved in the production of the goods they import…Trying to stop imports…amounts the economic suicide”. Ministers cite the example of their own countries where this process started early” and where some textile companies “have ceased to produce altogether and have transformed themselves…Many are quite successful, make a lot of money and provide sizeable employment”. On the other hand they point out that some companies in other EU countries “supported by their governments…hid behind the shield of European trade policy measures and clung to traditional manufacturing” where the result is that the end of textile quotas on 1st January 2005 meant “ending a breathing space of more than thirty years, they were out of breath and unable to face the competition…We do not believe the reintroduction of import quotas for certain textile and clothing products from China is going to save Europe's remaining textile industry”, explained the four ministers. They also deplored the fact that these restrictions were introduced “without adequate transitional arrangements”. The ministers appealed for importers to be given “more time to adapt to new trading conditions…Of course the best way to do that would be to renounce protective measures altogether or at least limit their application to situations of manifestly unfair competition”. To rectify the damages suffered by European companies and consumers, Sweden, Denmark, Finland and the Netherlands suggest “for example” exempting restrictions on imported goods covered by contracts concluded before the announcement of restrictions.