EU pressed to end China shoe duty

22/09/2008 12:00 - 771 Views

More than half the EU's member states voted yesterday to end emergency import duties against shoes from China and Vietnam, complicating a looming decision for Peter Mandelson, European trade commissioner.

Officials familiar with the discussions said that 15 countries voted against renewing the so-called "anti-dumping" duties, which were imposed in 2006, with only 12 in favour. The vote is non-binding but suggests that opinion may have shifted against imposing duties on imports that make consumer goods more expensive, particularly at a time of high inflation.

A spokesman for Mr Mandelson declined to comment on the vote. The trade commissioner will have to decide by October 4 whether to extend the measures, which impose duties of 16.5 per cent and 10 per cent, respectively, on Chinese and Vietnamese leather shoes.

The UK Department for Business, which opposed extending the duties, said: "We're greatly encouraged by the strong support from other member states. We are continuing to urge the Commission to bring measures to an end."

Earlier this week the Vietnam footwear and leather association argued for the duties to be lifted, saying they had increased the import price of shoes from €9.20 to €10.14 ($14, £12.60) per pair, and that the price to consumers had gone up by 10-18 per cent.

"The European economy is currently at the edge of recession and is suffering from high inflation," the association said. "Therefore, any extension of the anti-dumping measures . . . would have an even more negative impact on the low-income consumers who are the main [users] of Asian footwear."

European retailers and sportswear companies yesterday added their voices to the call for Mr Mandelson to end the duties.

Horst Widmann, president of the European sporting goods industry federation, said: "An extension would make a mockery of the EU's anti-dumping policy and reopen a divisive debate." He cited a study by the Swedish board of trade that up to 80 per cent of the value added in production of shoes took place in Europe, where they are designed and marketed.

Last week a Chinese trade official criticised the EU for giving in to protectionist sentiment by imposing anti-dumping duties on imports. But the European Commission pointed out that the number of such duties currently in place covers a small proportion of total trade and remains low by historical standards.

Mr Mandelson will visit China next week and is expected to push Beijing to open more of its economy to foreign investment as well as fielding complaints about the EU's trade policy.

Published: September 18 2008 03:00 | Last updated: September 18 2008 03:00

By Alan Beattie in London

Source: www.ft.com
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