EC Adopts Anti-Dumping Tariffs On Leather Shoes

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

27 March 2006

The European Commission announced on Thursday that it has adopted proposals by the European Trade Commissioner Peter Mandelson to impose a provisional anti-dumping duty on leather shoes from China and Vietnam.

The measures follow a preliminary Commission investigation that is said to have identified clear evidence of disguised subsidies and unfair state intervention to the leather footwear sector in China and Vietnam.

However, Mr Mandelson firmly reiterated his willingness to work with the Vietnamese and Chinese governments to address the questions of competitive distortions raised by the Commission’s investigation.

He announced that:

"These anti-dumping measures will correct the injury caused to European leather shoe producers. It is important that we act against unfair trade while encouraging legitimate and competitive trade from emerging economies. We do not target China and Vietnam’s natural competitive advantages, only unfair distortions of trade.”

In order to minimise any sudden impact on imports, the duties will be imposed progressively over a period of five months, beginning on April 7. They will rise to 16.8% for leather shoes from Vietnam and 19.4% for leather shoes from China - a duty sufficient to correct the injury caused to European producers by dumping.

The provisional measures exclude children’s leather shoes so as to ensure that even the small price rises are not passed on to poorer families. Special Technology Advanced Footwear will also be excluded from the measures because there is not sufficient production of these shoes in Europe for injury to have occurred.

A monitoring mechanism will be created to ensure that importers do not use these excluded categories to circumvent the duties.

The Chinese authorities have argued that there are serious flaws in the evidence presented by the EU, and have stated that they will take the issue to the WTO.

According to the Chinese, 98 per cent of enterprises in China's shoe making sector are privately run firms or joint ventures, and the State intervention claimed by the EU does not exist.

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