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This article deals with the textile dispute that occurred between the EU and China in summer 2005. The dispute is analysed in the context of the expiry of the Multi‐Fibre Agreement (MFA), China's accession to the World Trade Organisation and the resulting challenge posed by Chinese textiles and clothing to some European countries' industries. The main conclusions of the analysis are as follows. First, the cause of the dispute lies in a lack of preparedness on the part of the EU. Second, more innovative ways than safeguards will have to be found to address growing competition from China. Third, divergent interests among EU Member States made a coherent response to the competitive pressure posed by Chinese exports impossible, which might pose great problems in the future. Fourth, by shielding itself from Chinese exports while pushing China for market opening and liberalisation, the EU can be reproached for pursuing double standards.
