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18 July 2009

EU to decide on Asia’s shoe import duties in Sept

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The European Commission is expected to decide in September whether to propose extending dumping duties on imports of leather shoes from China and Vietnam, but most EU states want them scrapped, Reuters quoted EU sources as saying.

Last October, the Commission -- which oversees trade policy for the 27-country European Union -- extended duties of up to 16.5 percent on Chinese leather shoes and 10 percent on those made in Vietnam, pending a review. A majority of EU countries had opposed that move.

Industry and diplomatic sources with knowledge of the case told Reuters on Friday they expected Brussels to complete its review and submit its proposal for approval by member states by the end of September.

"The Commission's proposal is expected to be submitted to member states in September. But as it stands the majority, or at least 15 member states, favour termination," one source said.

Britain, Austria, Belgium, the Czech Republic, Cyprus, Denmark, Estonia, Finland, Germany, Ireland, Latvia, Luxembourg, Malta, the Netherlands and Sweden want the duties scrapped immediately, before the lucrative Christmas retail period, an EU diplomat said.

"Major shoe-producing countries Italy, Spain, France and Poland are all leading the charge to keep the duties," the diplomat added.

The EU regularly splits over dumping cases between its member countries supporting freer trade and those worried about Chinese competition against their own manufacturers.

The shoe duties were introduced in 2006 only after a compromise deal to keep them in place for just two years, instead of the usual five. If extended again, Commission sources say the duties would last at least five years.

But the industry and diplomatic sources said a compromise being considered by EU Trade Commissioner Catherine Ashton -- a Briton -- would allow the duties to lapse once they expire on Jan. 3.

"This would give certainty either way to EU importers before the busy Christmas period and at the same time allow EU producers the time to adapt and plan against cheaper imports from Asia," another source said.


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