EU, China agree to end textile quotas

Beijing, Oct 10 (PTI) The European Union has agreed to end quota restrictions on Chinese textile imports with a joint surveillance system in place to monitor the trade flow in 2008, the state media reported today.

The "double checking system", which will track the issuing of licenses for export in China and the import of goods into the EU, will operate for one year in 2008 following the end of quota restrictions on Chinese textiles and clothing, the EU commission said in a statement in Brussels.

After a "textile war," the EU and China reached an agreement in June 2005 on resuming quotas on China's textile exports to the EU, which expires at the end of 2007.

Although imports of these goods will be closely monitored, the level of import will not be restricted by this arrangement, the EU's executive arm said, according to the official Xinhua news agency.

"I welcome this further step in the cooperation between the EU and China in ensuring a smooth transition to free trade in textiles," said EU Trade Commissioner Peter Mandelson.

According to the EU Commission, the joint surveillance system will cover eight categories of textiles and clothing from China.

The system will be formally adopted by the commission in the coming days. On the EU side, national licensing offices will be in charge of the monitoring, the report said. ----PTI