Chinese labor safety shoes are likely to be exempted from EU
anti-dumping tariffs.
Li Fayin, a lawyer with Beijing-based Allbright Law Office,
disclosed that he had information from sources close to the
European Commission that the EU would not impose tariffs on
China-made labor safety shoes. Primary rulings following
anti-dumping investigations are expected next month.
Investigations have also been conducted in relation to leather
shoes, but parties are reportedly still discussing market economy
treatment on that front.
Li is representing several Chinese footwear makers in the
dumping charge initiated by the EU last June.
The lawyer said that if no more evidence was found before the
final ruling, shoemakers could breathe a sigh of relief.
EU trade officials, led by Fritz-Harald Wenig who is in charge
of trade relief in the European Commission, on Sunday met with
Chinese enterprises and the Shoe and Leather Industry Association
of Wenzhou, Zhejiang Province.
In Beijing, the delegation met with China's Ministry of Commerce
officials. The focus of discussions was the market economy
treatment of Chinese shoemakers in the EU and the claim that
Chinese leather shoes were being dumped in EU markets, ministry
officials revealed. However, they declined to disclose how the
talks were developing.
Late last year, the European Commission refused market economy
treatment to Chinese shoe firms that responded to dumping
charges.
If the EU does impose a punitive tariff on Chinese leather
shoes, having market economy status will at least help Chinese
shoemakers to enjoy lower duties.
In the last few weeks, ministry officials urged the European
Commission to reconsider market economy treatment for Chinese
leather shoe factories, saying the EU's decision violate World
Trade Organization rules.
According to the ministry, 98 percent of Chinese shoemakers are
privately run firms or joint ventures. There is no State
intervention as alleged by the EU.
Last month, EU Trade Commissioner Peter Mandelson claimed that
Chinese and Vietnamese footwear exporters conducted
"State-supported dumping" in EU markets, which caused serious
injury to the European shoemaking industry.
Mandelson proposed a six-month phasing-in of anti-dumping duties
of up to 19.4 percent by October on Chinese leather shoes.
The EU trade chief was quoted in European media as saying that
his proposal did not target Asia's labor advantage but "unfair
competition."
He said the phased-in duties would ensure that retailers with
goods in transit are not suddenly faced with unexpected costs at
borders.
"It means importers can plan ahead over the next six months with
the maximum of transparency and predictability. It nevertheless
means, that after six months, full duty will be in place and the
damaging effects of dumping will be counteracted."
Mandelson's proposals have been discussed at a meeting of a
committee of the 25 EU member states but no decision has yet been
revealed.
(China Daily March 15, 2006)