EU, China hold trade talks

http://www.chinaccm.com 2007-6-14 10:39

Chinese Commerce Minister Bo Xilai and EU Trade Commissioner Peter 
Mandelson reached consensus on a number of issues, including textiles
 and steel, during Tuesday's annual China-EU trade talks, it was 
revealed on Wednesday.
 
The Partnership and Cooperation Agreement (PCA) between China and the 
European Union (EU) was top of the agenda, according to a press 
release issued by Bo's delegation. 

"It is of vital significance to reach the 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 told a press conference after the 
talks. 

On textiles, the EU and China 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. 

In June 2005, following the so-called "textile war" between China and 
the EU, Bo Xilai and Peter Mandelson reached an agreement in Shanghai
 on resuming quotas on China's textile exports to the EU by 2007. 

The press release said the EU and China will continue dialogue and 
cooperation on textiles so as to maintain the steady and smooth 
development of bilateral textile trade. 

Mandelson told reporters that both sides were able to acknowledge and 
welcome the successful operation of the 2005 Shanghai textiles 
agreement. 

"We were both cognizant of the -- if I can put it in this way -- re-
entry problems of the return to normal trade and we agreed that we 
wanted to avoid any destabilization of the market," he said. 

"For our part our automatic licensing system will continue through 2008
 so we can continue to monitor market developments and discuss jointly 
with Chinese authorities any actions that we need to take to ensure a 
smooth transition from the textiles agreement to normal trading," he 
added. 

Besides, the EU also promised that the European Commission would table 
a proposal to ask all EU member states to lift the ban on the imports
 of China's processed poultry. 

The press release said the EU has assured the Chinese side of the 
proposal, vowing to resume normal trade in the near future. However, 
no date has been set. 

The EU imposed the ban on imports of China's processed poultry 
following the outbreak of bird flu in the Chinese mainland in 2004. 

According to the EU's rules, the European Commission's proposal needs
 
to be approved by a meeting of representatives from all EU member 
states. 

On China's Market Economy Status (MES), an issue the Chinese side has
 long put pressure on the EU about, the EU has promised to work "
constructively" with China on it. 

Bo told reporters that the market economy is diversified and there is
 no fixed model or criteria for it. 

China has scored remarkable achievements on building up the system for 
the market economy and China should be recognized as a full market 
economy, the minister said. 

Mandelson was quoted as saying by the press release that the EU has 
noted the achievements China has made, which have been written into 
the updated assessment report presented by Mandelson's office. 

"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 the EU side has complained about for so long, Bo 
urged the EU side to open the door to exporting high-tech goods to 
China. 

On the sharp increase of steel imports from China, Bo said the Chinese 
side has no intention of seeking a large amount of steel exports to the
 EU. Instead, he said, China has made concerted efforts to curb exports
 of products with high-energy consumption and high consumption of 
natural resources. 

The two sides agreed to hold informal talks on the issue at the end 
of June or in early July, according to the press release. 

Source: Xinhua