Posted on 02/23/2005 7:26:59 PM PST by maui_hawaii
Peter Mandelson, the European Union trade commissioner, on Wednesday demanded greater curbs on Chinese exports of textiles and clothing following the removal of trade-restricting quotas earlier this year.
Speaking before his first visit to China since taking office, Mr Mandelson said: “China must trade freely and fairly. If there is a perception that China is reaping the benefits of free trade without meeting the standards of fair trade, there will be a negative response in Europe and elsewhere.”
He said the growth of Chinese textiles exports was a particular worry: “I want to discuss with the Chinese government curbs that they could make to moderate export growth. In December they announced measures [to limit that growth]. It is too early to say definitely what those policies have achieved, but the signs so far are that they are too modest.”
Mr Mandelson also raised the possibility of using the “special safeguard mechanism” to put a brake on Chinese textiles imports into Europe, which have risen sharply as quotas have been phased out over recent years.
Negotiated during China's accession process to the World Trade Organisation, this mechanism allows countries unilaterally to restrict textile imports from China. It has never been used by the EU, and any move to apply the mechanism would be viewed with hostility by Beijing.
“It is quite possible that Europe will use special safeguards it is quite possible, but not certain,” Mr Mandelson said.
Coupled with forceful language on China's lack of protection for intellectual property rights and the need for a bigger Chinese contribution to WTO trade talks, Mr Mandelson's remarks suggest he intends to take a tough line in Beijing.
Brussels has in the past been careful to distance itself from the more aggressive stance adopted by some US lawmakers and trade officials, who have been more openly critical of China's trade policies.
But in a sign that the Commission is moving towards a more confrontational position, Mr Mandelson insisted on Wednesday that China would not be granted any reprieve in opening up its markets and abiding by international trade rules.
He said: “There is a view in China that it has already paid heavily to enter the WTO. But WTO membership is not the end of the reform path but just the end of the beginning. China has to work harder to ensure that its own markets are open to international competitionon fair and transparentterms.”
The commissioner cited intellectual property rights as another area of concern.
Good luck, commissioner. They don't exist there, despite whatever 'laws' might be in place.
European unions are much stronger than American unions. They are powerful enough to impose protectionist, job-preservation measures.
There will be no European Wal-Mart.
LOL! I'm very sure China is worried that the crapwasels might actually do something to them.
Monty Python at it's best.
Don't underestimate them.
Who?
The Europeans ability and willingness to seek punitive measures against Chinese imports into the EU.
Pah! The Chinese barely pretend to listen to us, and they aren't going to listen to the EU.
Punitive measures work both ways. China is not without it's own measures, and China knows that very well.
This is bluster.
Well then, we will see, but don't hold your breath waiting for those big punitive measures to appear from the EU.
China is going to get increasing pressure to change the way they operate.
as the dollar falls, the chinese peg makes their products even cheaper in europe. if Europe and other nations would tariff chinese imports to force them to drop the peg, I am all for it. the US doesn't have the guts to do it, maybe someone else does.
What actually will most likely end up happening is China is going to get major heat until they open up and comply with real free market economics and drop the multitudes of barriers foreigners face.
even japan hasn't removed such barriers - but at least their currency floats so their goods are priced in 1st world dollars, and so are their wages (actually, much higher then US wages) and standards of living.
for now, give me a 40% revaluation of the Yuan for starters, and I'll be happy. Because a 40% revalue will force the "china centric" approach of the US tech industry to be reassessed quickly - they will refocus on expanding in the US, and we can actually see some decent job and wage numbers as part of our economic recovery here, instead of exporting 9% GDP growth to china.
nonsense. tariffs do work. tariffs saved (and are saving) the US light truck industry from devastation. Its one reason why Toyota and Nissan are building light truck plants all over the US.
the chinese currency peg has to go - you can't have free trade with a nation that manitans an artificial currency peg.
China won't get away with as much as Japan did.
(There will be no European Wal-Mart.)
There already is one. It's French retail giant Carrefour.
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