Financial Times FT.com

EU agrees to admit Chinese knitwear despite quotas

By Raphael Minder, Matthias Ruch in Düsseldorf and Elisabeth Rigby in London

Published: August 3 2005 18:31 | Last updated: August 3 2005 18:31

The European Union has agreed to come to the rescue of European retailers struggling because some Chinese clothing shipments have been stranded in transit by allowing more imports of Chinese pullovers, even though China has exhausted the quota for 2005.

The agreement ends an internal EU tussle between the European Commission and member states, after a handful of member states last week blocked a Commission demand to show more flexibility towards imports from China.

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