By Bruno Waterfield - 4th August 2006
Deep EU divisions over punitive Brussels tariffs on cheap imports of Asian shoes and trainers may sink antidumping measures, the European commission has admitted.
Opposition from economically “liberal” countries, such as the UK, Sweden, Denmark and the Netherlands, has sunk the latest measures aimed at protecting European industry from artificially low priced Chinese and Vietnamese shoe imports.
On the other side, protectionist member states, such as France Italy, Spain, Poland and Portugal, have been dissatisfied with earlier duties proposed by EU trade commissioner Peter Mandelson.
At a meeting of national trade officials in Brussels yesterday, Mandelson was caught between both the liberal and protectionist camps, plunging EU trade policy on the antidumping measures into disarray.
“Antidumping measures are extremely sensitive and member states have different views on the subject,” said a commission spokesman.
“Our job is to see if there is a way out, to take stock of the situation and hopefully to arrive at a situation where we can command a majority of member states for a proposal.”
“However, there is clearly no guarantee that this is achievable… We now need to see if any approach can command support.”
EU officials are dismayed that shoe producing countries, that originally asked for protections, two weeks ago rejected a package of “deferred duties” for imports.
Paris, Rome, Madrid, Warsaw and Poland on July 20 opposed ceilings allowing imports of 145 million pairs of shoes from China and 95 million from Vietnam before tariffs kicked in.
New proposals imposing 16.5 per cent duties on Chinese shoe imports and 10 per cent on footwear from Vietnam were then sunk on August 3 when trade liberals registered opposition.
A majority of member states – up to 14 - rallied behind a free trade, pro-consumer bloc, described by the commission as the “so-called northern liberals”.
Only nine countries, including Italy band France, backed protection for European shoe industries, mainly based in southern or eastern Europe, two member states abstained.
Europe’s consumer and retail driven sports shoe industry has welcomed Thursday’s vote.
Horst Widmann, president of the Federation of European Sporting Goods Industries, called on Mandelson to re-think duties.
“Member states have realised that antidumping duties on Chinese and Vietnamese footwear will not help anybody.”
“The European commission has no choice but to look very carefully at this result,” he said.
“There could be no stronger signal that there is deep discontent among Europe’s governments and that the punitive duties will not be approved by ministers.”
Commission officials now suggest to burden of finding compromise lies with shoe producing EU members states ahead of a September deadline.
Unless Mandelson can find agreement interim tariffs, imposed in March, of 19.4 per cent for China and 16.8 per cent for Vietnam will expire on October 7.
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