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Lifting anti-dumping ban by EU does not ease shoemakers
Sep '11
In spite of the European Union (EU) ending the anti-dumping duty that it levied on leather-upper shoes imports from Vietnam on April 1, 2011, the Vietnamese exporters are still facing some problems in accessing the EU markets, a Vietnam Leather and Footwear Association (Lefaso) official has said.

Nguyen Thi Tong, General Secretary of Lefaso, while speaking at a workshop organized in Ha Noi, said it was expected that EU's move of lifting the 10 percent duty imposed for last four years would boost the competitiveness of Vietnam-made shoes in comparison with other competing nations like Indonesia, India, Cambodia, Bangladesh and Thailand, which were not subjected to such anti-dumping duty and rather enjoyed duty-breaks.

However, as stated by a Multilateral Trade Assistance Project (MUTRAP III) representative, the EU has introduced a programme pursuant to which it would continue to keep an eye on leather-upper shoe exports from Vietnam to the EU for the next one year.

If the EU observers at any point in time during this one year detect a significant rise in footwear export volumes from Vietnam to EU, along with a sharp decrease in prices, the EU may consider it as "continuation or repetition of dumping" by leather-upper shoe manufacturers from Vietnam and may at once re-impose the duty without any further probe into the matter.

To keep away from once again slipping into the trap of anti-dumping tariffs, the exporters need to report to Lefaso and the Vietnam Competition Authority (VCA), Vu Ba Phu, Deputy Director of VCA under the Ministry of Industry and Trade said.

The reports, he said, should include details regarding the volume and value of the goods shipped to the EU and should indicate no more than a reasonable rise in the export value per month.

He further stated that the exporters, instead of targeting a considerable rise in export volumes to the EU, should hunt for deals to manufacture high-value, premium quality goods.

At the seminar, the exporters were even advised to concentrate on developing trade names and altering designs to stand up to the market demand and to acquaint themselves with the rules and regulations and market trends in the EU to shun the sudden surge in exports.

Mr. Phu mentioned that there are other threats as the EU has still not withdrawn the 16.5 percent anti-dumping tariff that it imposed on leather-upper shoe imports from China. Such a significant difference in tariffs could lead to illegal exportation of shoes by China to Vietnam which may then be shipped to the EU taking advantage of the low tariffs applicable to the Vietnam made shoes.

The VCA official revealed that owing to high production costs in China, orders are shifting from that country to Vietnam, which is a positive sign for Vietnamese businesses.

Fibre2fashion News Desk - India

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