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Chinese Commerce Minister Bo Xilai and EU Trade Commissioner Peter Mandelson, leading delegations at Tuesday's annual China-EU trade talks, were able to reach consensus on several issues, including that of textiles, it was revealed yesterday. 

 

Chinese Commerce Minister Bo Xilai and EU Trade Commissioner Peter Mandelson, leading delegations at Tuesday's annual China-EU trade talks, were able to reach consensus on several issues, including that of textiles, it was revealed yesterday. 

 

A press release from the Chinese side put The Partnership and Cooperation Agreement (PCA) between China and the European Union (EU) at the top of the agenda.

 

"It is of vital significance to reach consensus on the PCA, because it would help forge a stable and predictable legal foundation for EU-China trade as well as enterprises from both sides," said the press release.

 

"We have also finally agreed the terms of reference for the negotiation of the update of the 1985 economic trade and investment agreement between the EU and China and we will be starting substantive discussions on that," Mandelson stated at a post-talks press conference.

 

On the contentious textile issue, both sides agreed to liberalize bilateral textile trade in 2008.

 

"Both sides have agreed to abide by the 2005 Shanghai textiles agreement and implement free textile trade in due time," said the press release.

 

The Shanghai agreement was hammered out in June 2005 by Bo Xilai and Peter Mandelson following the so-called "textile war" between China and the EU. If respected, quotas on China's textile exports to the EU would be reapplied by 2007.

 

"We were both cognizant of the re-entry problems of the return to normal trade and we agreed that we wanted to avoid any destabilization of the market," added Mandelson, noting that both delegations were fully aware of obstacles to be avoided.

 

"For our part our automatic licensing system will continue through 2008 allowing us to effectively monitor market developments. We will also be able to discuss jointly with Chinese authorities any actions needed to ensure a smooth transition from the textiles agreement to normal trading," he added.

 

Besides, the EU also promised that the European Commission would soon field a proposal asking all EU member states to vote on lifting the ban on the imports of China's processed poultry although no date has yet been set.

 

The EU slapped a ban on imports of China's processed poultry after bird flu outbreaks were reported in the Chinese mainland in 2004.

 

On China's Market Economy Status (MES), an issue that has long proved divisive, the EU has promised to work "constructively" with China thereon.

 

Bo told reporters that a market economy is diversified by its very nature and there exists no fixed model or criteria for it. He illustrated the remarkable achievements made by China to create a market economy system and called for the country to be recognized as a full market economy.

 

Mandelson replied in a press release that the EU had taken careful of all recent Chinese achievements.

 

"The European Commission noted and welcomed Chinese efforts to meet MES criteria, concluded that China has met one of the five technical criteria for MES, and proposed steps to China that will help make progress on the remaining four criteria," said Mandelson's office.

 

On the trade deficit that has been a flash point for the EU, Bo urged the European bloc to open the door to exporting high-tech goods to China.

 

As for the rise in steel imports from China, Bo said his country did not intent to seek a continuously large amount of steel exports to the EU. Instead, China will work to reduce exports of products consuming too much energy or natural resources. A series of informal talks will be held on the issue by early July.

 

(Xinhua News Agency June 14, 2007)