Chinese footwear manufacturers, headed by an industrial
association, will today take part in a hearing in Brussels relating
to European Union (EU) dumping charges against Chinese leather
shoes.
The delegation is expected to say that Chinese manufactures have
not harmed the European industry.
Meanwhile, the Italian Government claims it has found Chinese
shoes that could contain high levels of toxic chemicals.
"The dumping delegation will testify that Chinese footwear
makers have done no material harm to the European industry," said
an official surnamed Cui with the China Chamber of Commerce for the
Import and Export of Light Industrial Products and Art-crafts. But
she declined to give any further details.
In order to prove dumping has taken place, the EU has to show
that imports of Chinese shoes have harmed its domestic footwear
industry, according to regulations of the World Trade
Organization.
That requirement comes in if it is also shown that Chinese
enterprises have been selling products at prices lower than cost,
or prices lower than in its domestic market.
As China has not been granted market economy status by the
European economic bloc, enterprises involved in dumping
investigations have to win market economy treatment separately.
This means they have to prove they are acting as a proper free
market business.
If they cannot provide this proof, the EU will use the price of
a commodity, such as shoes, from a third country as a substitute
price.
The EU declined to give market economy treatment to the 13
Chinese leather shoemakers under investigation.
Cui said the enterprises involved had filed appeals to the
European Union asking it to reconsider the market economy
issue.
Experts said that if a country like Brazil was taken as a
substitute country, it could be a big blow to Chinese companies as
China enjoys cheaper labor and material resources.
Meanwhile, Italy should not disturb the dumping charge process
with other issues, said Wei Yafei, spokeswoman with the China
Leather Association.
She was referring to news that the Italian Health Ministry said
it had seized samples of shoes imported from China that might
contain toxic chemicals over limits set out in EU regulations.
"It is not right for the EU to impose its domestic standards,
which are only recommended rules, on Chinese shoemakers," Wei
said.
There is no globally accepted standard for the checking of
chemicals in footwear, she explained.
"I do not think it will have a great impact on China's shoe
exports. Chinese companies implement the standards agreed in
agreements," she said. "They will abide by them if there are
regulations about chemicals in the agreement."
Some EU members, including Sweden, Holland and Denmark, have
protested against the EU's possible anti-dumping duties on Chinese
footwear.
The EU initiated dumping investigations against labor safety
shoes and leather shoes from China in June and July respectively.
The primary ruling is scheduled to be made in April 2006.
The leather shoe case, which involved over 1,200 factories and 1
million jobs, is the largest dumping charge that the EU has
launched against Chinese products.
The China Leather Association has warned that the charge is
likely to be brought forward because in recent months there has
been a rapid growth in China's footwear exports to the EU, as
footwear traders make every effort to beat possible penalty
duties.
(China Daily December 22, 2005)