Marks and Spencer has had to find new factories to manufacture its knitwear since the introduction of the European Union’s textile quotas in June.

The quotas were introduced as an emergency response to complaints from Italy, France, Spain and Portugal which argued that cheap imports of Chinese-made trousers, sweaters, underwear and t-shirts were affecting their business.

M&S said that it has already found new factories to manufacture its knitwear, which would have been manufactured in China, and was currently looking at getting its underwear made in Sri Lanka.

Stuart Rose, chief executive for the retailer, said: “People want cheap goods and Italy does not make them. Protectionism does not work.”