China and the European Union were poised to reach an agreement late last night over the contentious issue of textile imports to Europe, following intensive discussions that lasted most of the day.
An announcement of a deal was expected before the annual Sino-EU summit, which starts today.
'There's no sticking point as such, but the deal won't be done until it's done,' EU trade commissioner Peter Mandelson told the South China Morning Post last night. The negotiating teams split into separate rooms last night and Mr Mandelson was seen in intense phone discussions, presumably to Brussels. EU ambassador Serge Abou was shuttling back and forth between the two rooms. A member of the Chinese side then went to meet Mr Mandelson in the EU's room.
'We thought we were very close to a resolution a number of times during the day today,' Mr Mandelson's press secretary said.
When asked whether the US or EU were harder to deal with, a mainland government negotiator said: 'When they need something then they have time for you.'
A quota system was agreed on June 10 to limit Chinese textile exports to Europe in 10 categories of garments. But the quotas, which ranged from 8 per cent to 12.5 per cent annual growth, were filled within just two months and Chinese-made bras, T-shirts and trousers began piling up at mainland and European ports.
At present more than 80 million garments, worth more than 400 million Euros ($3.89 billion), have been denied entry to the EU because quotas are already full.