Mandelson proposal to hit Chinese & Vietnamese leather shoes
24 Feb '06
2 min read
EU Trade Commissioner confirmed that the European Commission's investigation into complaints of dumping of leather shoes from China and Vietnam has found compelling evidence of state intervention, dumping and injury.
The Commissioner has recommended a progressive duty to be imposed over five months. After five months a full duty will be in place and the damaging effects of dumping will be counteracted.
Recommendation to Member States This is the first phase of the European Commission's investigation into allegations of dumping of leather footwear on the European market by China and Vietnam.
There is compelling evidence of serious state intervention on a large and strategic industrial scale in the footwear sector in China and Vietnam. Along with wide evidence of substantially flawed accounting practice, we have found clear evidence of non-commercial loans or capital grants from the state to producers; improper evaluation of assets; non-commercial rates for land-use and important tax breaks for exports.
These disguised subsidies allow Chinese and Vietnamese producers to export leather shoes to Europe at below the true cost of production in their own countries.
Natural comparative advantage is being topped up with anti-competitive behaviour.
This state-supported dumping is causing serious injury to European industry. The contraction of European production mirrors closely the rise in under-priced imports from China andVietnam. I cannot curb these imports or block their rise. I can, however, remedy the injury of below-cost pricing.
Inevitably frictions and disputes will arise in our relationship. I am committed wherever possible to try to reduce them through dialogue and cooperation. That is true in the case of shoes: but until a solution is reached, action is needed to make sure that the rules of fair trade are fully upheld.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
