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Extension of anti-dumping tax on shoes likely to hamper industry growth
Aug '08
Anti-dumping tax worth 16.5 percent imposed by EU on Chinese shoes is scheduled to end on October 7, this year.

However, recently, Italy, requested the European Union to prolong this duty. Italian authorities explained that once this restriction is lifted Chinese shoes will again flood the EU markets, harming the local enterprises.

On the other hand, Guangdong Province is determined to present China's side in response to Italy's request.

Statistics show that Guangdong, one of the key footwear manufacturing regions in China, has suffered huge losses mainly because of this anti-dumping tax.

Thus, leading enterprises and institutions have joined hands with the Government so as to prove to the Union that China will abide by the regulations and that it was safe to lift restrictions.

China's response is still in its initial stages, but soon a final draft will be sent to the European Union.

High-level official of Chinese Commercial Department, Mr Chen Lipeng said that EU was the top export market for Chinese shoes.

He explained that in past two years many changes have taken place. Current trade situation in China is different, especially due to global inflation, financial instability and unsuccessful Doha Round.

Reportedly, Guangdong exported 1.63 billion pairs of shoes in the first half of 2008, down 15.8 percent, than the same period last year.

Experts believe that end of anti-dumping tax is extremely important, since it was sure to help recover exports and lead to healthier economic relations.

Fibre2fashion News Desk - China

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