EU quota halts China clothing imports

Winter shortages of bras, knickers, knitwear, trousers and other clothing are being forecast due to an EU quota on Chinese textiles…

Winter shortages of bras, knickers, knitwear, trousers and other clothing are being forecast due to an EU quota on Chinese textiles which is blocking the importation of almost two million items of clothing to Ireland.

The situation, described as "a major problem" by the Irish Clothing and Textile Alliance (ICTA), could see scarcity in many shops including Arnotts, Clerys, H&M, Zara, Debenhams, House of Fraser, and Marks and Spencer.

The problem has arisen across the EU after Trade Commissioner Peter Mandelson imposed quotas on textile goods coming into the euro zone from China in June. The quotas, imposed to protect textile manufacturers particularly in southern Europe, were implemented in July.

However, due to the enormous volumes already coming in from China the 2005 quotas were almost immediately used up, leaving many importers with the problem that goods they had already ordered and paid for were barred from entering Europe.

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The Irish clothing industry says the seasonal nature of the business means these goods are "highly perishable". Unless the problem is resolved, millions of euro could be lost.

Six categories of textiles are blocked from China at the moment as up to 70 million items pile up in warehouses across Europe.

in Brussels yesterday, a committee representing textile importers and manufacturers from across the EU voted to send an emergency delegation to Beijing for negotiations on the issue.

Though Marks and Spencer would not comment, it is understood the retailer is particularly concerned about supply for its lingerie lines this winter. Also hit by the lingerie blockade are House of Fraser and Debenhams.

According to Mark Pilkington, managing director of Splendour - which supplies bras to these two retailers - autumn deliveries will be shipped, "but replenishment for Christmas is in question".

Irish clothing manufacturer Libra, which sells knitwear and blouses to Arnotts, Boyers and Moderne of Cork, says up to 20 per cent of its revenue "is tied up" in goods it has sold to retailers, but cannot bring into the country.

"We are mainly concerned about mid-season and spring-summer next year," said Duncan Graham, chief executive of Libra.

Eddie Shanahan, Arnotts marketing director said the quotas imposed by Mr Mandelson displayed a "gross misunderstanding of how the fashion industry works".

ICTA director Michael Hannon urged "swift resolution of the problem" warning: "If companies cannot get hold of these products which they have already paid for they will be forced to offset these losses through higher prices."

A spokeswoman for the Department of Enterprise, Trade and Employment said an Irish delegation had "clearly conveyed the significant difficulties currently being faced by Irish importers" at yesterday's meeting in Brussels.

Kitty Holland

Kitty Holland

Kitty Holland is Social Affairs Correspondent of The Irish Times