The European Union's decision to restrict textile imports from China has stirred up attacks from European retailers who are suffering losses due to the blockage.
Retailers claim that blocked shipments of sweaters could lose them 800 million euros (US$992 million) in the autumn-winter trading season, the Financial Times reported yesterday.
The new quotas for 2005 agreed in June by China and the European Commission have now been breached in the case of sweaters and trousers. Three other categories are close to hitting their ceilings for the year.
That has left retailers worried about shipments they have already paid for but not received as the autumn-winter season starts.
On Thursday, Thomas Ostros, Swedish trade minister, wrote to the EU's trade commissioner, Peter Mandelson, highlighting the problems faced by Swedish clothing companies.
Without a rapid solution to the problems, "there is a considerable risk that these companies could bring legal action," Ostros warned.
His views were echoed by Bendt Bendtsen, Denmark's economics minister, who wants to discuss changes to the quota system with Mandelson.
The stockpile for sweaters has reached 55 million items, according to the EU's quota-monitoring system, while retailers estimate the trouser surplus at 11 million items.
The blocked sweaters are worth 200 million euros to 250 million euros at cost price, according to the British Retail Consortium. They could run at 800 million euros in sales for retailers across the EU, one senior retail executive said.
Mandelson has given the 25 EU governments until yesterday to supply comprehensive trade figures to assess the cost value and volumes of the stranded goods.
Early this month, the EU agreed to raise emergency quotas on Chinese sweater imports to help clear goods that were shipped pending customs clearance.
Under the June pact between China and the European Commission, the EU barred Chinese sweater imports on July 12 after the quota for this year was used up.
(Xinhua)