Key data
| Regulation | EU-China Agreement under Article XXVIII of GATT 1994 — CELEX:22026A01077 |
|---|---|
| Publication | May 18, 2026 |
| Entry into force | Not specified |
| Affected parties | Import and export companies operating between the EU and China, foreign trade operators |
| Category | European Regulation |
| Legal basis | Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 |
| Affected list | EU List CLXXV (tariff commitments to the WTO) |
| Reason for change | Withdrawal of the United Kingdom from the European Union (Brexit) |
Spanish importers operating with China must review their tariff quotas. The bilateral agreement published on May 18, 2026 between the European Union and the People's Republic of China, under reference CELEX:22026A01077, adjusts the access quotas to the European market for Chinese products with preferential tariffs, as a direct consequence of the United Kingdom's withdrawal from the EU.
The impact is immediate for any company importing from China under a tariff quota regime: the maximum volumes permitted with reduced tariffs have changed. Operating outside those limits may mean paying ordinary tariffs, which are significantly higher.
What does this regulation establish?
This agreement was negotiated under Article XXVIII of GATT 1994, which regulates the procedure for modifying tariff concessions previously committed to the World Trade Organization (WTO). When a WTO member modifies its market—as happened with Brexit—it is obliged to renegotiate with affected trading partners.
The mechanism is as follows: the CLXXV list records all EU tariff commitments to the WTO, including tariff quotas (import quotas with reduced tariffs). With the UK's departure, the EU market shrank, so the import volumes previously agreed with China had to be redistributed between the EU-27 and the United Kingdom.
The agreement establishes:
- New access quotas for Chinese products in the European market with preferential tariffs
- Adjustment of import volumes previously agreed on the CLXXV list
- Application through exchange of diplomatic notes between the EU and China
The sectors for which quotas have been renegotiated include:
- Textiles
- Steel
- Agricultural products
- Various manufactures
Economic and operational impact
The change has two main effects on importing companies:
1. Potential reduction in available quotas. As volumes are redistributed between the EU-27 and the United Kingdom, the quota available for the European market may be lower than before. This means that a company that previously imported a certain volume under preferential tariff could exceed the new limit and be forced to pay the ordinary tariff on the excess.
2. Need for verification by product category. Not all products are affected equally. The agreement modifies quotas specifically by tariff category. Companies must verify whether their specific product codes are included in the renegotiated CLXXV list and what the new maximum applicable volume is.
For the sectors of textiles, steel, agricultural products and manufactures, review is a priority, as these are the sectors expressly mentioned in the agreement as affected by the quota adjustment.
Who does it affect?
- Spanish and European importing companies of Chinese products operating under preferential tariff quota
- Importers in the textile sector bringing fabrics, garments or raw materials from China
- Steel sector companies importing Chinese steel products
- Importers of agricultural products of Chinese origin subject to quotas
- Importers of various manufactures included in the CLXXV list
- Foreign trade operators and customs agents managing EU-China operations
- CFOs and purchasing directors of companies with supply chains in China planning annual import volumes
Practical example
A Spanish textile company that regularly imports fabrics from China under a preferential tariff quota from the CLXXV list must act as follows:
Before Brexit, the total EU quota (including the United Kingdom) for a certain fabric category could be, for example, 10,000 tonnes per year with reduced tariff. Following Brexit and renegotiation with China, that volume is redistributed: part is allocated to the United Kingdom and part to the EU-27. If the new quota for the EU-27 is lower than the volume the company had been importing, the excess will be subject to the ordinary tariff, which can be significantly higher than the preferential one.
The immediate step for this company is to identify the exact tariff code of its fabrics, locate that code in the updated CLXXV list and compare the new available quota with its usual import volumes. If there is a risk of exceeding the quota, it must adjust its purchasing plan or explore whether it can use other import mechanisms.
What should companies do now?
- Identify the tariff codes of their products imported from China and verify whether they are included in the EU's CLXXV list, especially in the textiles, steel, agricultural products and manufactures sectors.
- Consult the updated CLXXV list in the WTO database or through the official source of the agreement on EUR-Lex to learn the new quota volumes applicable to their product categories.
- Compare the new quantitative limits with usual import volumes to detect whether there is a risk of exceeding the quota and being subject to the ordinary tariff.
- Review annual purchasing plans if the new quotas are lower than the previous ones, adjusting volumes or distributing imports over time to optimize the use of available quota.
- Consult with a customs agent or foreign trade advisor to confirm the specific impact on each operation and ensure that the tariff classification of products is correct under the new quota structure.
- Monitor the entry into force date, which has not been specified in the May 18, 2026 publication, to apply the new quotas from the correct moment.
Frequently asked questions
What are the tariff quotas on the EU's CLXXV list?
The CLXXV list is the EU's official document to the WTO where European tariff commitments are recorded, including quotas (import quotas with reduced tariffs). Following Brexit, this list had to be redistributed between the EU-27 and the United Kingdom, which required renegotiation with trading partners such as China on the new volumes applicable to the reduced European market.
What Chinese products are affected by this agreement?
The agreement expressly affects sectors such as textiles, steel, agricultural products and various manufactures. Importing companies must verify whether their specific product categories are subject to new tariff quotas in the updated CLXXV list.
When does the new EU-China agreement on quotas enter into force?
The entry into force date has not been specified in the text published on May 18, 2026.