EU prepares shoe tariffs

EU trade commissioner Peter Mandelson is preparing to implement antidumping measures against China and Vietnam.

On Wednesday the European commission will meet to give the trade chief a mandate to adopt punitive measures on its behalf.

Mandelson has proposed provisional duties of 16.8 per cent against Vietnam and 19.4 per cent on China to be phased in over five months, starting at 4 per cent in April.

But as with the ‘bra wars’ scenario, the latest trade row has threatened to split the EU internally.

More liberal northern states that have long outsourced shoe production to Asia are pitted against southern European countries that produce their own shoes.

The introduction of tariffs has caused concern in Sweden where the government has attacked Brussels “protectionist” policy.

“I don’t accept that action to beat unfair trade is protectionism,” Mandelson hit back last month.

“We are targeting anti-competitive behaviour and not Asia’s natural advantage.”

The trade commissioner maintains that the tariffs are necessary because of strong evidence that cut-price shoe imports are hurting EU firms.

“There is evidence of injury to EU producers,” Mandelson told reporters.

“Since 2001, European footwear production has contracted by about 30 per cent, domestic prices have fallen by about 30 per cent. This is not solely related to dumped goods. But state intervention and dumping in China and Vietnam have exacerbated intense competition.”

China continues to urge the EU to reconsider, saying the planned measures are unfair.
Vietnam have also strongly denied the charges and called for a "fair decision" on tariffs.

The commission will formally adopt antidumping procedures on Thursday and measures will come into effect on April 7.

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