Safeguards for who?

By PDS | 19 April 2005

A press release from E.U. Trade Commissioner Mandelson's office headlined "China - Textiles: The Commission examines request for safeguards" is perplexing.

The press release informs us that the European Trade Commissioner, Peter Mandelson, met with representatives of the Italian textile industry and Euratex, the Trade Association of European textile producers. The Commissioner discussed with industry representatives the guidelines for the use of textiles safeguards against Chinese textile exports to the EU.

Commissioner Mandelson informed textile producers that the Commission was examining the request for safeguards against certain Chinese textile imports presented by Euratex on March 9. He said that he so long as the Commission had credible import data for Chinese textiles he would be in a position to make a decision on launching a safeguards investigation on April 25.

Such an investigation would last for sixty days during which the Commission would determine if serious disruption of the European textile market had occurred. If such disruption was found, the Commission would launch formal consultations with the Chinese. If the Chinese did not act to limit exports without delay, temporary safeguards in the form of import quotas could be used.

Safeguards for who? Not for consumers. The citizens of the E.U. might have expected that they would benefit from cheaper clothing as a result of the recent liberalisation of the global textile trade. Those Gap jeans might soon just be a little less pricey in Europe. No, it seems the commission plans to investigate ways of 'safeguarding' us from choosing less expensive imports.

Protectionism costs us as consumers twice over; higher prices, fewer choices. Less competition only ever benefits the less competitive producers, never the consumer interest. The E.U. should prioritise the interests of its individual citizens, not uncompetitive corporations.