EU Expected to Take Steps to Resolve Textiles Export Crisis from China

Strategic Insights -

The European Union is this week anticipated to implement measures to address the growing stockpiles of Chinese clothing imports, which have exceeded import quotas set in June. Excess shipments of pullovers, trousers, and blouses are being held by customs officials, while other categories, including shirts, bras, and flax yarn, are nearing their quota limits. Retailers and importers have expressed frustration over the situation, claiming they made orders based on the assumption that the long-standing trade quota regime would not be reinstated.

Key Takeaways:

  • The EU is expected to announce new measures to address the crisis, with options including transferring some of next year's quota to this year to clear the backlog.
  • Chinese imports of textiles have exceeded import quotas set in June, with excess shipments of pullovers, trousers, and blouses being held by customs officials.
  • At least four more textiles categories - shirts, bras, flax yarn, and dresses - are close to reaching their quota limits.
  • Retailers and importers are reacting angrily to the impasse, stating they made orders based on the assumption that the long-standing trade quota regime would not be reinstated.
  • The European Commission is under pressure to act as countries such as Sweden and the UK have expressed concerns about the steep rise in Chinese imports.
  • The EU textiles committee will meet on Thursday to consider options for addressing the crisis.

Statistics:

  • Over 99% of Chinese imports of shirts and bras have reached their quota limit.
  • Chinese imports of flax yarn have reached 99% of their quota limit.
  • Chinese imports of dresses have reached 92% of their quota limit.
  • Millions of trousers and pullovers are being held in warehouses across Europe due to excess imports.
  • The long-standing trade quota regime ended in June, leading to a rise in Chinese imports of textiles in Europe.

Sources:

  • "EU Expects to Take Action on Textiles Quota Impasse" by Tobias Buck, The Brussels Briefing, [exact publication date not specified]
  • "EU eyes options to ease China textiles quota row" by Reuters [no publication date mentioned]