European Union (EU) Trade Commissioner Peter Mandelson met with visiting Vice Minister of Commerce Gao Hucheng in Brussels Tuesday, trying to reach a deal on the textile disputes. 

The one-hour talks held on the eve of the EU's decision whether to take urgency procedures to contain the increase in Chinese exports.

"The tone of the meeting was constructive. Talks are continuing," said a brief statement issued by the EU executive European Commission (EC).

The EC is scheduled to launch formal consultations with China over T-shirts and flax yarn, a move that would allow it to impose import limits within 15 days of the formal start of negotiations if China fails to curb its exports.

To ease the situation, China agreed last week to raise export tariffs on goods in 74 categories by as much as five times.

However, China said it will scrap recently agreed plans to increase export tariffs on textiles should the EU and the United States also impose quotas on imports.  

"If the US and the EU formally carry out restrictions on any of these categories, we will not impose tariffs on the items in question," the Ministry of Commerce said.

(Xinhua News Agency May 25, 2005)