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WTO Chief Candidate Urges EU and US to Ease Textile Competition with China

Strategic Insights

— 1 min read

France's Pascal Lamy, top candidate for the head of the World Trade Organization (WTO), has expressed surprise at the current EU-China dispute over the surge of textile imports from China. In a recent interview, Lamy noted that the WTO had long ago worked out principles governing both scrapping the quota system for China's textiles and measures to be taken by importing countries. Lamy emphasized that the disputes were much anticipated and should have been warded off by necessary measures taken in advance. The EU had held a seminar in 2003 to prepare for a non-quota system era, where top wholesalers like Wal-Mart and Carrefour vowed to seize the opportunity to buy cheaper textiles from developing countries.

Key Takeaways:

  • Pascal Lamy, the top candidate for WTO head, has urged the EU and US to ease textile competition against China and other developing countries.
  • The EU-China dispute over textile imports was anticipated and could have been prevented with necessary measures.
  • The WTO had worked out principles to govern scrapping the quota system for China's textiles and measures for importing countries.
  • The EU held a seminar in 2003 to prepare for a non-quota system era, where top wholesalers vowed to buy cheaper textiles from developing countries.
  • The European Commission threatened to launch investigations into Chinese textiles, citing disruption of the European market.
  • China opposes the restriction, stating it violates the "spirit of free trade" and WTO admission conditions.
  • Lamy emerged as the top candidate to head the WTO after the first round of consultations among members on April 15.
  • The Brazilian candidate, Luiz Felipe de Seixas Correa, stood last among the four hopefuls.

Statistics:

  • 10 categories of Chinese textiles are subject to investigation by the European Commission.
  • China's textile imports to the EU were disrupted after the expiration of global quota system on January 1.
  • 3 countries - France, Mauritius, and Uruguay - have candidates in the running for WTO head.

Sources:

  • Xinhua via COMTEX, Paris, May 9, 2005.
  • News Provided by COMTEX (http://www.comtexnews.com)

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