BRUSSELS - European retailers on Wednesday welcomed a decision by Brussels not to seek an extension to Chinese clothing quotas, which sparked so-called "Bra Wars" when they were introduced in 2005.

The trade chiefs of Brussels and Beijing confirmed on Tuesday they would stick to a 2005 agreement under which the quotas are due to expire at the end of this year.

"This is very encouraging news for consumers across Europe," said Alisdair Gray, a director of the British Retail Consortium which represents supermarkets and high-street chains.

"Retailers can now commence purchasing cycles for next year’s spring and summer collections safe in the knowledge that ’Bra Wars II’ is not on the horizon," he said.

"Bra Wars," as it was dubbed by the media, broke out in 2005 when a surge of Chinese clothing and textiles prompted the European Commission to negotiate quotas with China.

But the quotas quickly filled up, leaving goods impounded in ports before new limits were negotiated.

Some EU countries, such as Italy, had hoped Brussels would try to extend the quotas until the end of 2008.

EU trade chief Peter Mandelson said on Tuesday Brussels and Beijing would monitor trade flows closely next year.

China is expected to cut tax rebates on exports of textiles as well as other goods, Beijing government officials have said.

The EU and China will meet in late July "to ensure the smooth development of trade in textiles," according to a text agreed by both sides at their meeting in Brussels.

Mandelson said China acknowledged for the first time it needed to take action over its soaring overall trade surplus. But Chinese Commerce Minister Bo Xilai said the trade relationship was balanced taking into account EU investment in China and services.