By Daisy Ayliffe - 28th September 2006
EU member states have delayed a vote on whether to impose tariffs on Chinese shoes.
On Wednesday EU ambassadors failed to agree on anti-dumping measures against China so the plans will now be voted on next week.
Brussels is under pressure to finalise a deal ahead of an October 6 deadline when current provisional duties brought in earlier this year expire.
But diplomats are struggling to reconcile deep splits.
Countries with traditional shoe making industries, such as France, Italy and Portugal argue that the move is necessary to protect local business.
But the so-called “Northern liberals” such as Germany, the Nordic states and the UK have inveighed against what they see as unnecessary, protectionist measures.
On Wednesday France tabled a compromise proposal calling for duties to be extended for another two years – rather than the five year period recommended by EU trade commissioner Peter Mandelson.
Mandelson proposed duties of 16.5 per cent for China and 10 per cent for Vietnam after the commission reported evidence of dumping.
The FT reports that Cyprus – who had opposed tariffs in the past – is now expressing “interest” in the French plans.
Nicosia’s backing could prove crucial next week – and would see the pendulum swing in favour of the European protectionists.
Diplomats say a final decision will be made next Wednesday – two days before the interim tariffs expire.
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