Brussels to propose extension of shoe duties

16/10/2009 12:00 - 553 Views

The European Commission is set to put forward a proposal that will extend EU import duties on shoes from China and Vietnam if agreed by EU member states.

A draft document leaked on Monday (12 October) suggests the EU executive will call for a 15-month extension to current duties of 16.5 percent and 10 percent on shoe imports from the two respective countries.

The decision is based on the need to protect EU shoe producers once the current two-year period of duties ends later this year.

"The investigation showed that there is a likelihood of continuation of injury for the short/medium term, until the process of adjustment of the Community (EU) industry has been completed," says the document, several newswires report.

Antidumping measures – import tariffs on products deemed to be priced at below their production cost – are a favourite EU tool in its many ongoing trade disputes with countries such as China.

But businesses and representatives from several EU member states have voiced their opposition to the proposed move in recent days, with the approval of a majority of governments needed if the extension is to go ahead.

Shoe-producing countries Italy, Spain, France and Poland are in favour of the duty extension reports Reuters, while the majority of other EU members are not.

Bigger manufacturers that make their shoes in Asia, such as Diesel, Adidas or Puma, are also fighting against the renewal of the shoe tariffs, as is EU consumer group BEUC.

But the commission argues the duties are necessary and that they only have a very modest effect on EU shoe prices.

As rumours of the proposed extension circulated last Friday, China's Vice-President Xi Jinping told business leaders in Brussels of the need for greater co-operation between the two sides due to the financial crisis.

"We should take concrete action to fight against all forms of protectionism in trade and investment," he said.

Despite the opposition, the Commission hopes that the limited 15-month extension will win over enough member states to see it implemented from 3 January of next year.

Companies have been given until 3 November to voice their opinion on the new proposal, before member states ministers vote on the extension this December.

ANDREW WILLIS

October 13, 2009 @ 09:06 CET

Source: euobserver.com
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