Financial Times calls Mandelson deal "sordid"

By Alex Singleton | 6 September 2005

Today's Financial Times denounces Monday's EU-China textiles deal, describing it as "sordid":

Yesterday's agreement was a victory for news management and little else. No one who cares about efficiency, fairness and the future of free trade should be celebrating.

The FT is also scathing of Blair's support of the deal:

"Free trade is right but you have got to get there in stages," Tony Blair, who makes a big deal out of banging the drum for economic liberalism in the EU, told the BBC yesterday. "It is not unreasonable for some of those people who are producers in Europe to say: we have our own interests in this process of transition."

In fact, those producers had a full decade of warning that the quotas were coming to an end, for at least the last three years of which China's competitiveness in textiles was evident. And Mr Blair's words should ring particularly hollow with the UK's own textile companies, many of whom have done a good and prescient job of restructuring themselves into high-end specialist manufacturers or design and distribution houses. They will now suffer next year from lack of access to low-cost Chinese production, as will European retailers.

Moreover, the entire episode has fed a belief in the developing world that the rules of free trade are there to be changed by the rich countries if it is politically expedient.