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Press Release

MANDELSON COMMITS TO SOLVING CHINA-EU TRADE ISSUES AS PRIORITY

11 January 2006

Commissioner Peter Mandelson, in a letter to the BRC Director General, has acknowledged the concerns of the retail sector on China-EU trade relations, particularly the EU's intentions to impose antidumping duties on leather footwear and plastic bag imports from China.

The letter comes in response to a written plea from the BRC and 13 of the UK's top retail CEO’s before Christmas, for the European Commission to act now to avoid a repeat of the textiles dispute last summer. The BRC fears EU duties on plastic bags will cost the sector in the region of £30m in added costs. Should protectionist countries like Italy and France have their way, the price of a pair of Chinese made shoes could go up by about £5.

In the letter, Mr Mandelson said he has made China-EU trade relations one of the key priorities of his mandate and is committed to ‘fostering growth in Europe by opening up our markets to competition’. He also agreed that anti dumping should not be used as an anti competitive shield against undesired imports.

The BRC is meeting China's Vice Minister for Trade, Gao Hucheng, today (Weds) to discuss these concerns and with the aim to preventing duties being imposed. With rumours of the EU intending to consider a further raft of protectionist measures targeting popular Chinese made consumer products such as ceramics, furniture and glassware, UK retailers will be watching the situation carefully.

BRC Director General, Kevin Hawkins, said: “Today’s meeting could be a turning point. Retailers rely on stability and predictability in managing supply chains. As China remains the greatest hope for bringing unbeatable value to our high streets, we trust the EU will keep its word on defending the rights of consumers and not just a handful of uncompetitive European producers'.



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British Retail Consortium

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