The European Commission today announced that it will not renew quotas on Chines textiles imports when the current quotas expire at the end of the year. But, to appease protectionist voices in certain member states, a one-year fudge has been introduced whereby exports from China will be “tracked” by a “double checking system”. What this means that exports will be counted when they are exported and then logged again when imported.

Those representing the low-end European textiles manufacturers will hope that if the EU is “flooded” with imports, the data will help them argue for reintroducing quotas. I haven’t taken soundings here in Brussels yet, but it’s possible that people here hope that China will somehow limit exports to the EU until the microscope has been taken away at the end of 2008, allowing a smooth transition. Regardless, once the quotas are gone, it will be hard for vested interests to get them back.

The upcoming end of quotas is great news for hundreds of millions of EU consumers who will benefit at the checkouts from cheaper clothes. It’s good news for European businesses, too, like Britain’s Marks and Spencer and France’s Carrefour who will benefit from outsourcing more of their production to China.