nation EU had been due to follow suit by early next week, limiting shipments of T-shirts and flax yarn to 7.5 percent over the previous year had China not taken voluntary steps to curb exports of these products to this level. These so-called "safeguards" would have been effective only until the end of this year, making it likely that the EU would have had to seek their re-application in six months' time. The pact agreed by Mandelson and Bo caps exports on a wider range of products and will remain in effect for a longer period. "The agreement provides for agreed transitional growth rates between now and 2007, followed by a further year during which both sides will work together closely in the hope that trade is conducted without further interference in this sector," Mandelson told a news conference with Bo in Shanghai. Ten categories of clothing and textiles are covered, including T-shirts and flax yarn. The two sides agreed growth rates in the region of 10 percent a year for three years until 2008, Mandelson's office said. --More 2347 Local Time 2047 GMT