China has urged the European Union (EU) to re-investigate its
dumping claim against Chinese leather shoes in the interest of
fairness.
Europe lacks evidence to support its claim that Chinese shoe
exporters are dumping goods, Chong Quan, a spokesman for the Ministry of Commerce, said
on Friday.
Chong was responding to EU Trade Commissioner Peter Mandelson's
latest proposal that called for duties on Chinese leather shoes to
increase in phases but quickly.
Mandelson said in a press release that they had found
"compelling evidence of state intervention, dumping and
injury."
If Mandelson's proposal is approved, the EU will impose a 4.8
percent penalty duty on leather shoes from China beginning on April
1. The figure will increase to 19.4 percent by October.
This proposal is scheduled to be discussed earlier next
month.
Chong denied the EU dumping charge, saying the EU's plan to levy
anti-dumping tariffs on Chinese leather shoes was protectionist and
contradicted the trend of trade liberalization.
He called for a review of the decision and asked the EU to treat
the Chinese companies fairly.
Denying Chinese shoe makers market economy treatment is
particularly unfair, he said.
The European Commission declined to give market economy
treatment to 13 Chinese leather manufacturers, which it
investigated last September.
As the EU does not yet regard China as a full market economy,
China believes it is vital for its enterprises to receive separate
treatment in anti-dumping cases. Otherwise, the European side will
take the prices of a third country, such as Brazil, as a
substitute. Generally labour and material costs are higher in those
countries than in China.
"The EU ignores the fact that 98 percent of shoe manufacturers
are funded by private and foreign capital. Refusing to grant market
economy treatment to Chinese shoe makers is a discriminatory action
violating the principles of fair trade," Chong said.
The shoe manufacturing industry is one of the most
market-oriented sectors in China, he added.
Although Mandelson's proposal is supported by shoe manufacturers
in southern European countries, it is condemned by EU importers,
retailers and shoe makers that have plants in China.
Peter Bolliger, chief executive of the shoe maker and retailer
Clarks, was quoted by the Guardian of London as saying: "Our
initial observation is one of disappointment. While noting the ...
exemption for children's shoes, we know this is not guaranteed and
is subject to challenge from sections of the industry, which must
be a matter of great concern to all parents."
The dumping charge, initiated by European shoe manufacturers
last July, is the largest for China in both value and volume. It
affects an export of US$670 million and about 4 million jobs.
China produces about 8 billion pairs of shoes a year, and the EU
is second-largest overseas market for Chinese footwear, following
the United States.
(China Daily February 25, 2006)