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UK gives clean chit to Vietnam, says shoe industry unhampered

10
Jan '06
In 2005 Vietnam was included in the EU's generalized system of preferences (GSP) for several products, even on shoes, whereas the apparel quotas were terminated.

However, considering the strong competition from China, exports to the EU dropped sharply.

Bicycle exports also decreased due to tariffs of 15.8 - 34.5 percent, designed to discourage dumping.

Meanwhile, United Kingdom's Ministry of Industry and Commerce, after a thorough investigation has decided to support Vietnam in shoe dumping suit filed over leather-capped shoes.

Its trade officials met officials of Vietnam Commercial Affairs Section and concluded that import of Vietnamese shoes into the EU markets would not hinder British shoe production.

Vietnam's estimated export turnover to the UK in 2005 reached £600 million, or $1billion while its imports reached £100 million or $170 million, according to estimates put up by industry specialists.

The December 2005 Newsletter issued by British Footwear Association states that "investigations and discussions on Anti-dumping continues and we expect no decision before late January or even February – too late to hit most deliveries for Spring/Summer 2006."

It further adds, "Lobbying in Brussels is intense with a recent letter to Peter Mandelson by some of the biggest British retailers urging him to “build on the lessons learnt from this summer's textile dispute” and not impose anti-dumping duties. Interestingly, very little has been heard of the steel toecap case (China and India) although it was started before the general leather shoe case (China and Vietnam).

"Reportedly, the survey of a sample of Vietnamese firms found them to be further away than their Chinese counterparts from operating in a full market economy. This means that any duties which may be imposed will be larger for Vietnamese than Chinese suppliers – earlier rumours suggested the opposite.

"Reportedly, the survey of a sample of Vietnamese firms found them to be further away than their Chinese counterparts from operating in a full market economy.

"This means that any duties which may be imposed will be larger for Vietnamese than Chinese suppliers – earlier rumours suggested the opposite," mentions the BFA newsletter.


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