E.U. : No More Chinese Knitwear Import this Year

The European Union closed its borders on 21 July to Chinese pullovers and cardigans, sending shock waves through European fashion stores and mail-order businesses.

Orders to refuse imports of the Chinese knitwear came because documents showed European importers were about to reach their allotted limit.

Europe and China agreed on a limit of 69 million pieces of such clothing through the end of the year, as part of a pact to limit certain Chinese textiles exports to Europe.

Retailers were caught off guard by the cutoff because of the speed at which imports reached the ceiling. On July 11, a month after Europe and China agreed on the limit, the E.U. had given permission to retailers to import 27 million cardigans and pullovers. By July 19, import applications had doubled to 55 million cardigans and pullovers.

The E.U. is now turning down import applications because experts believe the 69 million mark will be hit by goods already on their way to Europe.

That is affecting retailers that have placed orders in China for next season's fashion without yet having permission from Brussels to import them. Retailers have paid for massive orders in China for the coming season. Now they can't sell their products. Mail-order businesses can't deliver the goods they've promised in their catalogues.

European import permits for other types of Chinese clothing may also run out in the coming weeks.

The E.U. has placed on its watch list 12 categories of Chinese textile products, including T-shirts, pullovers, men's trousers and bed linen.

Back to Index of July 2005