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Trade blasts EU inaction on China

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Europe's main employer and employee organisations have accused the European Union of doing too little and too late to safeguard the industry against surging Chinese imports.

Filiep Libeert, president of employers organization Euratex, and Valeria Fedeli, president of trades union group ETUF:TCL, have jointly called for the European Commission (EC) to take immediate safeguard action.

Mr. Libeert was particularly critical of EU member-states to monitor imports in real-time and the EC's failure to issue guidelines on safguards until April 6.

After describing the EC's guidelines as "more of an invitation to the Chinese to increase their exports to us than anything else", Mr. Libeert said: "The Commission has hardly emerged with credit from this long drawn out execise. It is de facto surrendering EU companies and jobs without a fight."

Based on Chinese data Euratex has requested immediate safeguard action in twelve product categories.

Official Chinese figures point to a further rapid acceleration of exports to the EU. Data for the first two months of 2005 show an overall increase of 73% compared to the same period a year ago. In the product categories, for which Euratex called for safeguard action a month ago, the surge in volumes has been even more dramatic: pullovers and jerseys (+893%), trousers (+201%), tights and pantyhose (+1400%) and linen fabric (+530%). Euratex says that prices in the first three categories fell by 37%, 8% and 38% respectively. It adds that the imports of women's dresses from China are up by 542% and prices down by 57%.

The surge in Chinese exports to the EU and the way prices have dropped testified to "abnormal" trade practices that could only be explained by (social) dumping, said Ms. Fedeli. ETUF shared Euratex's sense of betrayal, she said.

Whilst ETUF supported fair, sustainable and transparent trade liberalisation, Ms Fedeli added that it could not be achieved at the expense of labour conditions or the environment.

 

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