The European Union is running into some problems with its quota policies on Chinese goods:

The European Union will tomorrow put proposals to member states for the release of millions of Chinese garments stacked up at customs warehouses since the EU imposed import limits in June, said EU Trade Commissioner Peter Mandelson.

If the proposals are accepted, then about 70 million sweaters, trousers and bras could be released by mid-September, Mandelson said in a British Broadcasting Corp. interview.

Designed to protect European manufacturers from cheaper Chinese clothing, the quotas have led European retailers to complain they may have to find higher-cost suppliers in other parts of Asia or Eastern Europe to avoid shortages.

Kishore Jayalaban, Director of Acton’s Rome office, commented on the political scrambling that is currently underway to end this impasse on Vatican Radio today. You can listen to the report by clicking here (544 kb mp3 file).