Shanghai Agreement

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The Shanghai Agreement sets the import quotas for Chinese textiles into the EU . It was in place until 2007 .

The background to the agreement was a security clause in the accession treaty between the People's Republic of China and the World Trade Organization in 2001 . This was intended to enable WTO members to restrict Chinese imports if they see themselves as threatened by this on the domestic market.

But when the EU Commission opened such a procedure in the first quarter of 2005 at the urging of the Italians , Spaniards and French , it drew the Chinese government's indignation and in the meantime the good trade relations between the two economic powers were seen as being seriously endangered. But on June 10, 2005 , an agreement was reached in Shanghai between the People's Republic of China and the EU; the import quotas until 2007 were set for ten types of textile. While EU trade reacted positively, European textile producers felt left out.