China, EU textiles deadlock

China and the EU failed to reach agreement Monday on how to resolve their textiles dispute, the Financial Times reported. The continuing dispute casts a shadow over the EU-China summit taking place in Beijing. France, Italy, Spain, Greece, Portugal and Poland all opposed a compromise deal outlined by Peter Mandelson, EU trade commissioner. Mandelson wanted to permit all goods ordered in China after July 12 to enter the European market without subtracting them from 2006 quotas. Some 80 million articles of clothing have been stopped at EU borders since China exceeded the region's textile export quotas in June.