EU, China resolve textile row

The EU and China averted a textile trade war by striking a deal that would limit the growth in exports of 10 Chinese textile and apparel products to the EU to 8-12.5% a year until the end of 2007, according to media reports. Talks between China and the EU began in May over surging Chinese textile exports following the end of global quotas on Jan. 1 this year. The maximum growth allowed for products ranging from T-shirts, flax yarn, bed and kitchen linens and other textiles to European markets were greater than the 7.5% annual cap that the EU can unilaterally impose under China's WTO agreement. The deal still needs approval from EU member states.