EU TO SLAP ANTI-DUMPING DUTIES ON CHINESE AND VIETNAMESE SHOES
The EU is planning to impose anti-dumping duties of up to 20 percent on leather shoes from China and Vietnam. Press reports suggest that EU Trade Commissioner Peter Mandelson will announce the additional tariffs on 23 February, after an investigation by the European Commission found what spokespersons described on Monday as "compelling evidence" that Beijing and Hanoi were helping shoe producers export at prices lower than domestic ones in violation of international trade rules. They said this was done by providing manufacturers with cheap rent and loans, tax breaks and other trade-distorting measures. The recommended tariffs would be phased in starting at 4 percent on 7 April, and gradually rise through October.
EU retailers, consumer groups, and international shoe manufacturers have warned that consumers will bear the brunt of the duties, with estimates of the increase in price of a pair of shoes affected ranging from five to 20 euros.
Last month, Chinese Vice-Minister of Commerce Gao Hucheng threatened the EU that Beijing would challenge any additional duties on shoes at the WTO. However, Chinese officials are now striking a more conciliatory tone, and have expressed the hope that a solution could be reached bilaterally. Trade commentators in China suggest that the government may offer to place limits or a tax on exports to the EU, as it did last year in the spat over textiles. Unlike China, Vietnam is not a member of the WTO, and has indicated that it would prefer to seek a compromise.
Shoe manufacturers in China and Vietnam are joining forces to fight the EU measures, and are expected to carry out investigations in order to provide information on local shoe production.
Notably, the mere threat of anti-dumping measures from Brussels has been sufficient to affect Vietnamese shoe exports to the EU.
"China, Vietnam shoe companies cooperating to fight EU tariff threat," FORBES, 20 February 2006; "Chinese manufacturers oppose EU anti-dumping duties," CHINA VIEW, 22 February 2006; "EU on brink of shoe war," EUOBSERVER, 21 February 2006; "EU to impose 20% duties on shoes from China," CHINA VIEW, 21 February 2006; "Footwear giants condemn EU plans for China import tariffs," THE INDEPENDENT, 22 February 2006; "EU plans duty on Chinese shoe imports," UNITED PRESS INTERNATIONAL, 21 February 2006; "Brussels to curb Asian shoes exports," FINANCIAL TIMES, 21 February 2006; "China hopes for solution to EU shoes spat," CHINA DAILY, 21 February 2006.