Details

Abstract / Summary

The Shanghai Agreement signed between the European Union (EU) and China in June 2005, imposed restrictions on 10 categories of the Chinese textile exports. Prior to the agreement, the textile-manufacturing industries of the European countries (France, Spain, Portugal and Italy) faced competition from the low cost Chinese textile exports. The Shanghai deal helped to protect these European industries. However, the European textile retailers who had placed huge orders with the Chinese manufacturers before the signing of the agreement, were now faced with a shortage of stock supply. Soon after the agreement was signed, the textile imports from China exceeded the prescribed quota levels and European authorities would not allow the excess Chinese goods to cross the European boundaries. By the end of August 2005, more than 75 million Chinese garments were piled up at the EU ports. The governments of the Northern European countries like; Germany, Denmark and Sweden, that were home to some of the biggest European textile retailers, suggested the European Commission make changes to the textile agreement. In September 2005, amendments were made to the agreement and the quota levels of the imports from China were revised. However, the European retailers and the Chinese manufacturers felt that both the countries needed to come up with a better and permanent solution to maintain a long-term trade relationship.

Field of Interest

Business & Economics

Author

N. Bhavika, fl. 2009

Copyright Message

Copyright © 2005 by IBS Center for Management Research

Content Type

Case study

Duration

0 sec

Format

Text

Original Publication Date

2005

Page Count

10

Publication Year

2005

Publisher

IBS Center for Management Research

Place Published / Released

Hyderabad, Andhra Pradesh

Subject

Business & Economics, Social Sciences, International Business, International trade, Tariffs, Textile industry, Textile Mills, Negócios Internacionais, Negocios Internacionales, European Union, China, Instruments of Trade Policy (e.g., Tariffs, Quotas, Subsidies, etc.), Chinese

Keywords and Translated Subjects

Negócios Internacionais, Negocios Internacionales