THE TEXTILES Monitoring Body (TMB) of the World Trade Organisation (WTO) has ruled that the European Union (EU) broke the WTO agreement on textiles and clothing when widening its import quota regime following its enlargement eastwards and southwards in May. The TMB ruled that the EU could have found alternative ways of protecting the textile industries of the 10 new member states other than widening quotas eight months before their abolition. It added that the EU had calculated the extension of quotas in an overly restrictive way.

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