Millions of garments from China are reported to be stranded on ships in ports across Europe following the reintroduction of quotas on them. The British Retail Consortium has reported that pullovers, cardigans and waistcoats worth an estimated UKŁ30 million at retail are being blocked from the British market alone and the situation is causing a major headache for retailers waiting to stock their shelves for winter and crucial Christmas sales period.
On Monday (August 8th) imports of Chinese-made trousers also reached their annual quota limit. Imports of Chinese sweaters were blocked in July after it became clear they had already exceeded a 2005 quota of 181.5 million.
EU Trade Commissioner Peter Mandelson, however, said the European retailers were to blame by allowing too many shipments ahead of cut-off dates. "The problem has been caused by importers trying to beat the restrictions after the Shanghai Memorandum of Understanding was signed on June 10," Mandelson said. "The sheer scale of their attempt to beat the restrictions has presented us with immense
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Shipments that left China before July 11 are being allowed into Europe, but final decisions on future trade will not be made until early September. Earlier this month, the Commission managed to get EU agreement on allowing China to use 10% of 2006 quota for sweaters this year. China, however, has not yet formally agreed to this.
Mr Mandelson will be talking to his Chinese trade counterpart Bo Xilai this week and the European Commission is asking all EU governments to submit the latest data on Chinese textile imports immediately, in order to make a better analysis of what impact the cheap imports are having.
China promised to limit its rapidly growing textile trade with Europe after both the EU and the United States complained that imports of cheap Chinese textiles were threatening their own producers.
The 25-nation EU and China agreed in June to limit Chinese exports of men's trousers to 104 million for the rest of 2005 as well as imports of other goods like sweaters. Big European retailers have lobbied against trade action leading to curbs in Chinese textiles. EU has allowed all the consignments that left Chinese ports before the end date. 
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