Thursday

23rd Mar 2017

EU clothes firms get round China quotas

  • Only one third of the textile quotas have been used (Photo: European Commission)

Following introduction of quotas to curb explosive Chinese textile exports to the EU last summer, European textile businesses seem to have found other ways to import cheap clothing.

The EU quotas on Chinese textiles lead to mountains of Chinese garments pilling up at ports in what became known in the press as the "bra war."

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

But one year later the situation is completely different with as little as just one third of the quotas used up, according to Swedish business paper N24.

Import statistics show Hong Kong is now exporting more than the whole of China of the qouta-covered goods.

The figures are so high it would mean the whole of Hong Kong would be working only for the textile industry, textile analyst Henrik Isakson from Kommerskollegium, the Swedish governmental agency dealing with foreign trade and trade policy, told the paper.

"The degree of utilization of Chinese quotas are very low and everybody is wondering why. My theory is that a great deal of smuggling is taking place," said Ake Weyler from the Textile Importers Association in Sweden to the paper.

Textile exports to the EU have largely moved to other Asian countries, unpublished figures from the Swedish agency showed.

South Korean textile exports to the EU have risen 140 percent in the past year, Bangladesh exports grew by 47 percent, Indian by 37 percent and Vietnamese by 140 per cent.

But second to none is Hong Kong where textile exports to the EU have risen by 234 per cent compared to last year.

"Everybody in the business knows that textiles from Hong Kong are manufactured in China," Mr Weyler added.

But it is hard to control all sub-suppliers and EU resources to control imports are limited.

Eurozone chief in 'drinks and women' row

[Updated] The Netherlands' Jeroen Dijsselbloem faces calls for resignation after saying that crisis-hit countries in southern Europe spent "money on drinks and women" before being helped by others.

Greek bailout talks to 'intensify'

Greece and its creditors will meet in Brussels later this week to unblock negotiations needed for a new tranche of financial aid, amid concerns over the country's economic situation.

Varoufakis back in push for ECB transparency

The former Greek finance minister Yanis Varoufakis and German left-wing MEP Fabio De Masi want to know whether the European Central Bank overstepped its powers when putting capital controls on Greek banks in 2015.

MEPs demand stronger rules against tax evasion

MEPs in the civil liberties and economic committees voted in favour of toughening up EU wide rules on tax evasion, as they gear up for institutional talks in March on the EU's anti-money laundering directive.

Stolen Russian billions ended up in EU states

Illicit money flowing out of Russia ended up in almost every single EU state, an investigation has found, posing questions on the integrity of Europe’s banking systems.

News in Brief

  1. Russia invites EU diplomats to occupied Crimea
  2. UK parliament in lockdown after reported attack
  3. Brussels attacks remembered with minute of silence and noise
  4. Magnitsky's lawyer injured near Moscow
  5. Trump to travel to Brussels on 25 May for Nato summit
  6. Polish defence minister accuses Tusk of treason
  7. Fillon slips in polls as new allegations emerge
  8. Brexit summit for EU-27 will be on 29 April

Stakeholders' Highlights

  1. European Gaming & Betting AssociationAudiovisual Media Services Directive to Exclude Minors from Gambling Advertisements
  2. ILGA-EuropeTime for a Reality Check on International Day for the Elimination of Racial Discrimination
  3. UNICEFHuman Cost to Refugee and Migrant Children Mounts Up One Year After EU-Turkey Deal
  4. Malta EU 2017Council Adopts New Rules to Improve Safety of Medical Devices
  5. Nordic Council of MinistersNordic Energy Research: How to Reach 100 Percent Renewable Energy
  6. Party of European SocialistsWe Must Renew Europe for All Europeans
  7. MEP Tomáš ZdechovskýThe European Commission Has Failed in Its Fight Against Food Waste
  8. ILGA-EuropeEP Recognises Discrimination Faced by Trans & Intersex People
  9. Nordic Council of Ministers25 Nordic Bioeconomy Cases for Sustainable Change
  10. Malta EU 2017Consumer Protection Laws to Be Strengthened by EU-Wide Cooperation
  11. European Free AllianceSupporting Artur Mas: Democracy and Freedom Cannot Be Convicted
  12. UNICEFSyria Conflict 6 Years On: Children's Suffering at Its Worst

Latest News

  1. EU declaration to voice unity in troubled times
  2. Terror attack shuts down UK parliament
  3. Catalonia and Scotland at core of Europe's geopolitical conundrum
  4. La présidentielle française sous cyber-alerte maximale
  5. EU doing well in global energy ranking
  6. Child migrants endure 'abysmal conditions'
  7. French socialist woos Europe with new vision
  8. EU to Macedonia: 'Stop playing with fire'