EU moves on textile dispute

The EU moved to escalate the textile dispute with China, with a special committee proposing to launch formal WTO consultations with Beijing, a precursor to imposing temporary import quotas on Chinese textiles. EU Trade Commissioner Peter Mandelson is to hold talks with China's chief textiles negotiator, Gao Hucheng, late Tuesday before the EU head office decides whether to begin bilateral consultations. If China does not agree to voluntarily restrict exports, the EU may act unilaterally, according to media reports. A Chinese Ministry of Commerce spokesman said China may cancel its tariff increases on 74 categories of textile exports announced last week if the EU and the US move ahead with their quota plans.