EVO, MODINT and VIVO go to Court in China Clothing Crisis

25 August 2005

This week the Dutch associations EVO, MODINT and VIVO commenced preparation for an accelerated legal procedure against the Kingdom of the Netherlands. In co-operation with PricewaterhouseCoopers the organizations are requesting the release of blocked clothing imports for which contracts were closed and financial obligations entered into prior to the recent setting of quotas. EVO, MODINT and VIVO are also preparing a European case aimed at compensation for the companies involved.

EVO, MODINT and VIVO have also sent a critical letter to Dutch Prime Minister Balkenende, in which they are requesting him to urge EU chairman Mr Barosso for a quick solution.

Managing Director Dick van den Broek Humphreij of EVO explains: "EVO, MODINT and VIVO no longer feel confident that Eurocommissioner Mandelson will come up with an acceptable solution in the short term. The European economy is bigger than just the South European member states, but its importance is insufficiently recognised by Mr. Mandelson."

In spite of the political pressure it looks like the European Commission will not come up with a short-term solution that will result in the actual import of the clothing ordered. Resolving an imminent impasse and getting the goods into the shops in the shortest possible term is of such importance that taking the accelerated legal route is considered justified.

EVO, MODINT and VIVO are basing their case on the Commission's carelessness in putting up trade restrictions. There has been no reasonable transitional arrangement established and the arrangement threatens to have an unjustified retroactive effect.

This case represents absolutely no threat to the European industry. After liberalisation of the textile trade with China, the first five months of 2005 saw clothing imports by European member states rise only by 3% while in the Netherlands they actually declined by 6%. The major difference has been that trade flows have shifted from Asia as a whole before liberalisation, to primarily China after liberalisation.

Source: PR Newswire

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