Denying China's shoe-making industry the status of a fair
competitor was wrong, industry officials said on Friday, adding
that the European Commission's decision runs against the interest
of the EU economy.
The European Union rejected on Thursday a request by Chinese
shoemakers for market economy treatment in an anti-dumping case
involving more than US$780 million.
The move will make it easier for the EU to impose high duties on
imported shoes and escalate an already-simmering trade dispute.
The decision means that Chinese product prices will be compared
to those of shoemakers in other countries such as Brazil, where
production costs are higher than in China. Chinese exports would,
therefore, be more likely to be liable for anti-dumping duties.
An official surnamed Wang from the China Chamber of Commerce's
Division for the Import and Export of Light Industrial Products and
Handicrafts said they had expected the result since the EU
governments were under great pressure from Italy and Spain, which
want to reduce imports from Asia.
"But it is still shocking that not a single one of the Chinese
companies is given the market economy treatment," Wang said. "The
EU absolutely ignored the fact that the industry in China is
operating free of government control or support."
As the next step, Chinese footwear makers will try to prove that
they have done no material harm to the European industry, Wang
said.
To make its case for an anti-dumping charge, the EU has to show
that enterprises have been selling products at prices lower than
cost and that imports of Chinese shoes have harmed its domestic
footwear industry.
Representatives of shoe brands such as Timberland and Wolverine
met EU Commission officials immediately after the decision to
express concern that anti-dumping duties would help local
manufacturers at the expense of consumers and retailers.
"What would happen is that European industries that have adapted
to the new world would be penalized," said Gerd Rahbek-Clemmensen,
vice-president of Danish retailer Ecco.
"The fact is that if the EU rules in favor of the anti-dumping
charge, most will be hurt," said Chen Guorong, president of
Wenzhou-based Dongyi Shoes Co Ltd, which imports shoemaking
machinery and materials from Europe.
China imports US$300 million worth of leather and US$50 million
worth of shoemaking machinery from Europe annually.
The EU's decision to deny Chinese companies market economy
treatment came after efforts by Chinese trade officials to stop the
high duty rate.
Gao Hucheng, vice-minister of commerce, had a series of meetings
with EU officials and industry representatives this week. He warned
that raised duties on shoes could set a dangerous precedent that
could damage Sino-European relations.
Europe dropped quotas on Chinese shoes at the start of 2005, and
since then imports have surged.
Under its rules, the EU has until early April to impose
temporary sanctions and until mid-October to set tariff increases
that could stay in place until 2011. Imported shoes currently carry
a tariff of less than 10 per cent.
Retail lobby groups said the decision would add up to 10 euros
(US$12.05) to the price of a pair of shoes.
(China Daily January 14, 2006)