As per reports, Euratex has welcomed EU’s initiative to address the impact of foreign subsidies on the internal market. The organization has called for a comprehensive instrument which guarantees level playing field, but it is not protectionist and does not discourage foreign investment. The European textiles and clothing industry (T&C) has complex value chains and is inter-dependent on many other sectors. The absence of a level playing field and fair reciprocity between EU and third country competitors on EU internal market, is a concern.

The distortive effects of subsidies provided by non-EU governments have jeopardized the competitiveness of many EU T&C companies. These foreign subsidies could distort the internal market, specifically the general market activity of economic operators in the EU, the acquisitions of EU undertakings, public procurement procedures and access to EU funding. The commission proposes to create a new legal instrument to address these challenges.

Euratex opines that the EU proposal needs to be as comprehensive as possible, both in its scope and in the redressive measures it proposes. The new legal instrument should take into account provisions already available in e.g. EU competition law, Trade Defence Instruments (TDIs) and the International Procurement Instrument.