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WTO to resolve China-EU row, over shoe imports
May '10
The shoe import row between China and European Union (EU) that had persuaded the European manufacturers to be at odds with the consumer groups and companies, operating with China, will now be resolved by the World Trade Organisation (WTO).

As discussions between China and EU ended undecided, WTO's dispute resolution body, decided to constitute a panel to judge the matter.

The row instigated by China, which is a second of its kind at WTO against EU, was in opposition to the anti-dumping duties that were imposed by EU on imports of shoes from China. The duties have been fixed at 16.5 percent on shoes imported from China, while it is 10 percent for those imported from Vietnam.

An official from China at the meeting stated that, such duty imposition by EU had impaired the jobs and living of around 150,000 persons engaged in the leather footwear industry.

Speaking further he said that, Chinese industries would also like to emphasize that their interests were severely harmed by the anti-dumping schemes imposed by EU.

As per the WTO rules, the member countries were authorized to levy duties on products that were being dumped and sold at a price below their production cost, which ultimately damages the importing countries' trade.

Nonetheless, such anti-dumping tactics may be manipulated for safeguarding the domestic industries, and thus turn out to be the usual cause for trade collisions.

Refuting these allegations, EU trade lawyer, Sybilla Fries said that, the anti-dumping measures for which China is demanding a panel were not imposed by EU to protect its own domestic industries, but to combat fraudulent trade practices.

Fibre2Fashion News Desk - India

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