Textile exporters in India may face difficulties in accessing markets in the European Union (EU) after the removal of quotas from January 2005. EU is setting stiff conditions on the use of chemicals in textile products, restricting preferential duties and introducing new rules of origin to keep a check on the flow of textile imports into its member states.

To begin with, EU is planning stricter labelling requirements. It is also asking its companies to factor in labour and environmental concerns an agenda that the 15-member union had failed to push through into the multilateral trading system during talks under the World Trade Organisation.

EU is of the opinion that consumers should be aware of the chemicals that are being used for manufacturing textile products. Health concerns of the citizens of member states were paramount and textile labelling should provide clear, accurate and understandable information, a paper prepared by the Commission of the European Communities
said.

The paper laid out the different options available to the EU in dealing with imports into member states from countries like India, China and Pakistan from January 2005.

Among the options being considered by the EU, which at present offers access to developing countries at 20 per cent lower tariffs and duty-free access to least developed countries (LDCs) through the generalised system of preferences (GSP), is "limiting the preferences".