Spanish apparel federation Fedecon is to sue the EU over its recent decision to allow China to outstrip its 2005 textile-import quotas.

The group will demand compensation for damages and losses related to the decision, which will enable 21 million extra garments to enter the European Union, a Fedecon official confirmed.

Most of Spain's apparel makers are endorsing the suit, now being prepared by Fedecon's lawyers, he added.

The EU's June 10 deal to allow the Chinese imports to enter Europe will cause 7 million wears to sit unsold in Spain, the Fedecon official said, as cheaper Chinese clothes take the market by storm.

The blitz is seen triggering 2,000 job losses and €20 million in revenue losses.

"This is not fair," the official said, adding that Spain is losing about 40-50 jobs a day because of the Chinese invasion.

Fedecon's lawsuit follows widespread industry alarm over the disastrous effects that the Asian textile incursion is having in Spain.

The industry expects production to fall sharply and 115,000 jobs to go by 2010 if nothing is done to bolster the trade's competitiveness.

The official reiterated prior industry's complaints against the Spanish government's cavalier attitude toward its problems.

According to Fedecon, the state has not fulfilled its promise to help the industry or draft a scheme to avert the impact of China's competitive edge.

Industry Minister Jose Montilla has been criticised for his "little receptiveness" to the sector's needs.

By Ivan Castano.