Minister Lehtomäki concerned about the problems of Finnish companies importing Chinese textiles
Press release 248/2005
15.8.2005
Finnish textile importers are facing problems caused by the import limitations concerning textile and clothing products the EU and China agreed upon in June. What makes the situation problematic is the fact that the importers had already made purchase agreements for this year at the end of last year and in the beginning of this year, before the limitations were agreed upon. As the import quotas become exhausted, the excess products are held up in the customs warehouses or are still on their way from China. Especially for small importers the situation threatens to become economically unbearable. In two product categories – sweaters and trousers – the quotas of Finnish importers have already been used up. The limits are approaching also in some other product groups.
"As far as the importers are concerned, the situation is totally unreasonable. We cannot accept placing importers who have acted in all sincerity before a situation like this,” Minister for Foreign Trade and Development Paula Lehtomäki points out. Finland has reservations concerning the EU limitations on textile imports and is trying to practice its influence on the European Commission in order to find a quick solution to the importers’ problems. Lehtomäki has contacted EU Trade Commissioner Peter Mandelson in order to have the situation solved. Lehtomäki has suggested to Mandelson that, when there exists a binding purchase agreement signed in the beginning of the year concerning a shipment of products, the imports should be allowed in spite of the quotas being exceeded. In this question Finland is working in close cooperation with Sweden, Denmark, the Netherlands and Germany.
The quantitative import restrictions on textiles and clothing were lifted in accordance with the WTO stipulations in the beginning of the year 2005. However, it is still possible to impose limitations on China under the stipulations of China’s WTO membership agreement, which differ from the general WTO regulations. The European Commission and Chinese authorities agreed on 10 June about import limitations concerning certain textile and clothing products, to stay in force till the year 2008. Quick implementation of these quotas surprised many textile importers who had already made orders from China for their autumn and winter collections at the end of the year 2004 and the beginning of 2005.
Additional information: Market Access Unit, Director Ilkka Saarinen, tel. +358 9 1605 6327, [email protected], or First Secretary Helena Silvonen, tel. +358 9 1605 5596, [email protected]