After weeks of being stockpiled at European borders, millions of Chinese garments finally found their way into European Union markets, ending a textile trade dispute.
Ever since the World Trade Organization's longstanding system of textile quotas expired at the beginning of this year, European producers have been lobbying for new limits on what they claim to be a "flood of cheap Chinese garments."
Under pressure from domestic manufacturers, the European Commission, the executive arm of the 25-nation EU, sought a deal with China in June to reimpose restraints on 10 categories of textile goods.
After negotiations, the two sides signed an agreement that will expire in 2007. It gives European manufacturers time to adjust to a world of unfettered competition.
The deal, however, did not take into account European retailers. Many ordered Chinese textiles without knowing new limits would be imposed in June and ordered accordingly.
The consequences were dire: barely a month after the deal, sweaters imported from China exceeded restated quotas; another week later, men's trousers, blouses, bras, T-shirts and flax yarn hit the limits one after another.
Up to 80 million garments were reportedly piling up in European warehouses and customs checkpoints. Retailers began to complain that their shelves would be bare for the autumn and winter seasons unless the withheld clothes were released.
EU governments were split along predictable lines: nations with big textile industries, such as France and Italy, fought fiercely to maintain  quotas; Nordic countries with small manufacturing industries supported their retailers to get cheap Chinese apparel.
Facing mounting pressure, the embarrassed European Commission took the issue to Beijing.
EU Trade Commissioner Peter Mandelson appealed to the Chinese government to "share the burden," while admitting there was no legal basis for China to rework the June agreement.
Marathon-style talks were held in Beijing, resulting in China and the EU agreeing to "a satisfactory and equitable solution."
Under the agreement reached on Monday, all blocked Chinese textiles would be allowed to enter the EU markets under the principle of equally sharing the burden.
The deal shows that China and the EU have the political will to solve trade disputes by negotiations and friendly consultations, analysts said.
"As a matter of fact, the EU and Chinese economies are quite complimentary, both sides could have closer economic cooperation through mutual-beneficial trade and specialization. In the long run, both sides can reach a win-win situation," Europe Investment Bank President Philippe Maystadt said.
Maystadt warned the EU should speed up modernization and structural reform to transform itself into a knowledge-based, innovation-driven economy.
Europeans should give up competing with China in the low-tech, low-skill textile industry, said the Economist, a London-based weekly news magazine.
(Xinhua)