By Daisy Ayliffe - 6th April 2006
The EU begins imposing tariffs on leather shoes imported from China and Vietnam on Friday.
The European commission took the decision after it found Asian producers were exporting goods at below their domestic selling prices.
Between April 2004 to March 2005, EU imports of shoes from Vietnam increased by 700 per cent, while imports from China increased by 320 per cent.
The volume of shoes coming into the EU from Vietnam is 120 million pairs a year, while around 95 million pairs come from China.
Under the new scheme, leather shoes imported from China and Vietnam will be subject to duties gradually rising to 19.4 per cent and 16.8 per cent respectively over the next six months.
Retailers have argued the move will trigger a price rise as the industry tries to cope with the tariffs inflicted upon it.
But EU trade commissioner Peter Mandelson has brushed aside claims that the move will hit consumers.
“The duty will be just over €1.5 so the idea that this will lead to a price rise of 20 per cent is fanciful,” Mandelson told reporters in February.
“I would suggest to retailers that there is plenty of margin for them to afford this anti-dumping duty without detriment to consumers.”
The move has also met with opposition from some member states.
Sweden and other Nordic states protested against the imposition of “protectionist” measures while producers of leather shoes, such as Italy, Spain and Portugal pressed the commission to introduce measures to stamp out Chinese dumping.
“I don’t accept that action to beat unfair trade is protectionism,” Mandelson insisted when outlining his plans earlier this year.
“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 refutes the allegations of dumping and argues that punitive measures could trigger a rerun of last year’s “bra wars”.
That textile crisis sparked a bitter row between EU member states as millions of pullovers, bras, trousers and blouses piled up in customs warehouses, blocked under EU textile import quotas.
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