The European Commission is set to conduct a two month investigation, led by Trade Commissioner Peter Mandelson into Chinese textile imports into the EU. The investigation follows a large increase in textile imports into the EU in the first quarter of 2005.
” We are very interested in Peter Mandelson's announcement. There are clearly concerns about the impact that increased imports from China are having on Europe's new clothing industry “
– Alan Wheeler, TRA
Cheap, often poor quality clothing being imported from China is considered the biggest threat to textile reclamation in Western Europe. According to the UK Textile Recycling Association, by the time these clothes are donated for reclamation they are often not suitable for re-use and can only be broken up for recycling or sent to disposal.
At the beginning of this year, restrictions on the number of imports of new clothing from developing nations to lucrative markets in Europe and North America were lifted, leading to an influx of goods, predominantly from China, into Europe.
Alan Wheeler, national liaison manager at the TRA, said of the situation in the UK: “This phenomenon is making the whole industry less financially viable and many are struggling to keep their heads above water. The TRA is aware of at least 30 businesses that have either ceased trading or that have stopped exporting second hand clothes in the last few years.
“We are very interested in Peter Mandelson's announcement. There are clearly concerns about the impact that increased imports from China are having on Europe's new clothing industry. Our association will be contacting Mr Mandelson to make him aware of potential impacts that there will be on our industry in the UK as well,” he added.
Market disruption
The investigation will aim to determine if market disruption has occurred and whether the EU should impose special safeguard measures. The Commission will also be launching immediate consultations with China in an attempt to find a satisfactory solution.
Nine categories of textile imports will be investigated, including T-shirts, pullovers, blouses, stockings and socks, men's trousers and women's overcoats.
In each of the nine categories, import increases range from 51% to 534% since the beginning of 2005. Under the terms of the guidelines published by the Commission, these rises are more than sufficient to warrant a wider investigation into market disruption.
Mr Mandelson said: “Member states have finally made available import statistics for the first quarter of 2005. In several categories of textile and clothing imports they do give cause for serious concern.
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“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,” he added.
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