Envoys of the EU 25 member states to Brussels refused to endorse a reform of the bloc Generalised System of Preference (GSP) for developing nations due to fears of a surge in cheap textile and clothing imports from Asia, they said. .
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“There was no agreement,” an EU diplomat said after the ambassadors meeting. .
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The European Commission, in charge of trade policy for the 25-nation bloc, has drafted the reform but has so far been unable to get it adopted by member states. .
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The EU executive will now assess on April 6 whether its proposal should be changed, the diplomat said. .
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Italy led the opposition against more preferences in textile imports at a recent EU foreign ministers meeting. .
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Italy complains that the textile industry, already under attack from cheap Chinese imports, will be further weakened by lower duties on textile imports from Asian nations such as India. .
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The Commission said it would not revise its policy.”We do not intend to alter our proposals, but we are aware of member state concerns with textile producers other than China in the longer run,” said European Commission trade spokeswoman Claude Veron-Reville. .
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France and Italy have raised concerns with the Commission about the prospect of burgeoning Chinese imports putting European firms out of business. .
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Global textile quotas were scrapped at the beginning of the year, allowing China unlimited access to Europe. .
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The European clothing and textiles industry group EURATEX has already called on the Commission to impose trade limits on Chinese goods. .
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Aid group Oxfam criticised the delay in agreeing trade preferences for poor states. .
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The EU said it would speed up the trade reform to help tsunami-hit states in Asia hit by the December 26 killer wave. .
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“It is bad news for tsunami affected countries,” said Oxfam spokesperson Louis Belanger, adding that Sri Lanka would be worst hit. .
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Source: reuters.com.za
Date:3/26/2005
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