By Chris Jones - 30th August 2006
The European commission has pressed ahead with plans to impose import tariffs on shoes from China and Vietnam despite growing opposition from member states.
Proposals from EU trade chief Peter Mandelson to impose tariffs of 16.5 per cent on Chinese imports and 10 per cent on footwear from Vietnam 10 per cent were endorsed on Wednesday during the commission’s first full meeting after the summer break.
But they will face a tougher passage through the council of ministers, which represents the EU’s 25 national governments.
Sweden, Germany, Britain and Denmark have led the opposition to the tariffs, which they claim distort international trade.
Countries such as Portugal, Italy and Spain, which have significant footwear manufacturing sectors, have backed Mandelson’s plans, claiming the duties are necessary to protect jobs there.
Mandelson in April imposed the temporary tariffs of 19.4 per cent on China and 16.8 per cent on Vietnam in a bid to protect European manufacturers from a flood of low-cost imports.
But these temporary duties expire on October 6, leaving little time for an agreement to be reached on extending the tariffs – albeit at reduced rates – for a further five years.
A preliminary vote on Mandelson’s proposals back in July ended with defeat for the British commissioner, but a spokesman for the commission said that the earlier vote now counted for nothing.
“Votes in advisory committees have been overturned in council before,” he said.
He also warned that member states which opposed the commission’s proposals could face legal action requiring them to justify their opposition.
“The commission’s proposals are based on a 15-month investigation. We are not in the business of fudging the figures.”
It is our job to tackle unfair competition wherever it exists. Member states must now assume their responsibility,” the spokesman said.
But free market supporters claim that the duties would have an adverse impact on consumers.
Brussels, 30th August 2006 -- Trade duties on leather shoes would hit British consumers' pockets at a time when many families are already facing higher utility bills, Syed Kamall, Conservative member of the European Parliament's trade committee
“Trade duties would make our shoes more expensive at a time when many families are already being stung by higher utility bills,” said British centre-right MEP Syed Kamall.
“If a majority of countries oppose duties on shoes, I believe Peter Mandelson will have a mandate to stand up to the protectionist member states.”
And there is considerable opposition to the duties from European footwear producers as well.
The European branded footwear coalition (EBFC), which includes manufacturers such as Timberland, Hush Puppies, New Balance, Kickers and KangaRoo’s, said that the duties would lead to higher prices for consumers and fail to protect EU shoe makers.
“Protectionist measures do nothing to support a strong domestic industry. By adopting this proposal, Europe’s policy-makers harm the long-term global competitiveness of the European footwear industry,” the EBFC said in a statement.
It added that the considerable investments made by EU shoemakers would also be under threat through artificially higher prices – although the commission claims that the average increase would be as little as €1.4 for a pair of shoes imported at €8.5 and sold for €35.
EU imports of Chinese leather shoes grew by 450 per cent between 2004 and 2005, and by more than 1000 per cent since 2001. During that same period, prices have fallen by around 31 per cent, according to commission figures.
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