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Commission: China, Vietnam face leather shoes duty extension
04
Dec '09
The investigation found that, in spite of duties imposed, Chinese and Vietnamese-made leather shoes continue to be dumped in the European market. Although measures have partially stemmed the effects of dumping, this uncompetitive behaviour has continued to cause significant harm to EU manufacturers, which are undertaking significant efforts to adjust their business models.

In this context, the removal of measures at this stage would lead to increased dumping and injury—and potentially halt the adjustment process of an industry which employs over 260,000 workers in the EU. In addition, the investigation did not uncover any significant adverse effects on consumers or distributors. Consumer prices have remained virtually stable and distributors have more moderate profits, but these remain healthy, exceeding 20%. The stability of prices reflects the relatively low level of duties (ranging between 9.7% and 16.5% of import prices), which on average amount to less than €1.5 per pair for shoes that retail at €50—while they are imported on average at approximately €9 per pair.

On the basis of these facts, EU anti-dumping rules call for an extension of measures.

However, in its recommendation the Commission proposed a 15-months extension—rather than 5 years, the maximum allowed by the rules— as the investigation has shown that the industry's adjustment process is well on track. A 15-month period therefore appears reasonable to allow the industry to adjust, while minimising any effects on other stakeholders.

The decision, which should be published no later than 2 January 2010, rests now with Member States.

In reaching a decision, the Commission carefully weighed the preliminary findings of its investigation, the comments of all interested parties, and the technical advice provided by Member States experts.

The formal investigation was initiated in October 2008 and scrutinised every aspect of this market.

European Union

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