Sino-EU Trade Relations

cctv.com 02-24-2005 16:36

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Guest:

Peter Mandelson: EU Trade Commissioner

Lead in:

With the dramatic change after the end of the Cold War, the relation between China and Europe has been developing rapidly. We also see an increasing number of visits of the two sides, to seek common grounds and solve differences. The issue in the economic field got the most attention. Join us today is Mr. Peter Mandelson, EU Trade Commissioner.

Mr. Peter Mandelson showed his tough attitude to China-EU trade relations on Financial Times before his first visit to China:

EU trade warning to China

Increased curbs on Chinese exports of textiles and clothing, following the removal of global trade-restricting quotas this year, were on Wednesday demanded by Peter Mandelson, the European Union trade commissioner.

鈥淐hina must trade freely and fairly. If there is a perception that China is reaping the benefits of free trade without meeting the standards of fair trade, there will be a negative response in Europe and elsewhere,鈥Mr Mandelson said before his arrival today on his first official visit to China since taking office.

He said the growth of Chinese textile exports was a particular worry. 鈥淚 want to discuss with the Chinese government curbs that they could make to moderate export growth. In December they announced measures [to limit that growth]. It is too early to say what those policies have achieved, but the signs so far are that they are too modest.鈥

Mr Mandelson also raised the possibility of using the 鈥渟pecial safeguard mechanism鈥to put a brake on Chinese textile imports into Europe, which have risen sharply as quotas have been phased out over recent years.

Negotiated during China's accession process to the World Trade Organisation, this mechanism allows countries unilaterally to restrict textile imports from China. It has never been used by the EU and any move to apply the mechanism would be viewed with hostility by Beijing.

鈥淚t is quite possible that Europe will use special safeguards it is quite possible, but not certain,鈥Mr Mandelson said. Coupled with forceful language on China's lack of protection for intellectual property rights and the need for a bigger Chinese contribution to WTO trade talks, Mr Mandelson's remarks suggest he intends to take a tough line in Beijing. Brussels has in the past been careful to distance itself from the more aggressive stance adopted by some US officials, who have been more openly critical of China's trade policies.

But in a sign that the Commission is moving towards a more confrontational position, Mr Mandelson insisted yesterday that China would not be granted any reprieve in opening up its markets and abiding by international trade rules.

He said: 鈥淭here is a view in China that it has already paid heavily to enter the WTO. But WTO membership is not the end of the reform path but just the end of the beginning. China has to work harder to ensure that its own markets are open to international competition on fair and transparent terms.鈥

The commissioner cited intellectual property rights as another area of concern, saying: 鈥淭he laws on China's books are very good but they are not properly enforced.鈥Mr Mandelson earlier this week urged the US to act in a co-ordination with the EU on the issue and not yield to a recent official complaint from American companies that want the US to start a case against China at the WTO.

He said: 鈥淲ithout ganging up, a joint message will be stronger than a divided one.鈥

(origin: Financial Time)

Editor:Xiang  Source:CCTV.com