China and the European Union have agreed they will solve all future textile trade disputes through timely consultation, Chinese Ministry of Commerce said in a statement.

China and the European Union reached a deal early on June 10 to limit the growth in Chinese exports of textile and clothing to the European Union in the coming three years, staging a smooth transition before completely opening the EU market to Chinese textile exports in 2008.

The agreement was reached between Chinese Commerce Minister Bo Xilai and EU Trade Commissioner Peter Mandelson after ten hours of closed-door discussions starting at 2:00 p.m. Friday.

According to the Chinese ministry's statement, the two sides said during the discussions they value their all-round strategic partnership and are willing to promote bilateral trade and economic relations on the principles of mutual benefit.

They also agreed it is crucial to properly solve all issues in bilateral textile trade and avoid unilateral actions and trade frictions.

Talks have been going on between China and the European Union over the past weeks over an alleged surge of Chinese-made textile and clothing to the European market after the elimination of global quotas on Jan. 1, 2005.

Source: Xinhua