Swedish Apparel Giant: EU' Restriction on Chinese Textile Hurts Free Trade Philosophy

The EU' restriction on textile imports from China has been one of the economic concerns in Sweden. Hennes and Mauritz (H&M), a major Swedish apparel chain, described the restrictions as damage to the free trade idea and observed irrationality in the implementation of such restrictions.

 

In the interview over the phone, Mr. Par Darj, Head of Investor Relations with the company, complained about EU's decision of setting July 12 the deadline for shipment of Chinese textiles in its final review, instead of July 20 in its initial decision. The 8 days makes real differences, that is , tremendous losses to a big business like H&M which owns some 1,000 outlets in 21 countries worldwide.

 

To fulfill its commitment on providing "fashion and quality at the best price", H&M has more than 700 suppliers around the world with 60 percent in Asia. 30 percent of its annual orders are placed on Chinese producers.

 

Mr. Darj was worried about the consumers' interests at risk due to rising prices if H&M had to substitute some hi-cost products for favorably priced quality Chinese imports which are facing limited admission.

 

Mr. Thomas Ostros, Swedish Minister of Industry and Trade, has petitioned recently to EU trade commissioner Mr. Peter Mandelson in a letter asking for a significant rise of quotas for Chinese textiles or an eradication of quotas.

 

Sweden is not the only EU member to call for quotas relaxation. Finland, Denmark, Holland, together with Germany and France, have all urged the European Commission to reconsider its decision to protect the interest of businesses and consumers in these countries.