China And EU Gear Up For New Anti-Dumping Dispute

by Ulrika Lomas, for LawAndTax-News.com, Brussels

17 January 2006

The decision by the European Commission last week to deny market-economy status to thirteen Chinese footware manufacturers is threatening to spark another trade dispute between the European bloc and the People's Republic.

Market economy status has not been granted by the Commission to either China or Vietnam, meaning that decisions on such matters are made on an individual company basis.

Coming in the wake of anti-dumping disputes over Chinese textiles, the EC's decision to investigate whether Chinese and Vietnamese-manufactured shoes were being sold at below cost price in Europe was the result of complaints from several EU member states, led by Italy.

Commenting on the decision on behalf of Trade Commissioner, Peter Mandelson, EC spokesman Peter Power announced on Thursday that:

"Member states met with the Commission this morning and there was overwhelming support for the proposal of the Commission not to grant market economy status to 13 Chinese companies."

The EC is expected to announce in April its decision on whether to impose provisional anti-dumping duties, and to state in October if it will impose the tariffs for a five year period.

However, the Chinese authorities have pledged to contest the matter before the World Trade Organisation if the EC does decide to impose such duties.

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