Chinese labor safety shoes are likely to be free from European
Union (EU) anti-dumping tariffs.
Li Fayin, a lawyer with the Beijing-based Allbright Law Office,
said he had been told by sources close to the European Commission
that the EU would not impose tariffs on Chinese labor safety shoe
makers in primary rulings (expected next month), because it has
found no evidence that China's exports have injured the bloc's
shoemaking industry.
Investigations into whether labor safety shoes and leather shoes
were dumped into Europe have been completed. But the two sides are
still talking about market economy treatment in the leather shoe
case.
Li represented Chinese footwear makers in the dumping charge
initiated by the European economic bloc last June against Chinese
labor safety shoes.
The lawyer said that if no more evidence was found before the
final ruling, shoemakers could breathe a sigh of relief.
Yesterday EU trade officials were still in talks with China's
Ministry of Commerce. Discussions were focusing on the market
economy treatment of Chinese shoemakers in the EU claim that
Chinese leather shoes were dumped in the bloc, officials with the
ministry revealed. However, they declined to disclose how the talks
were progressing.
Late last year the European Commission declined to give market
economy treatment to those Chinese shoe firms that responded to
dumping charges.
If the EU does impose a punitive tariff on Chinese leather
shoes, having market economy treatment will at least help Chinese
shoemakers to gain a lower duty rate.
In the last few weeks officials with the Chinese commerce
ministry urged the European Commission to reconsider market economy
treatment for Chinese leather shoe factories, saying the EU's
decision not to give them market economy treatment violated World
Trade Organization rules.
According to the ministry, 98 percent of enterprises in China's
shoe making sector are privately run firms or joint ventures and
the State intervention claimed by the EU does not exist.
Before the negotiations in Beijing, the EU delegation led by
Fritz-Harald Wenig, who is in charge of trade relief in the
European Commission met Chinese enterprises and the shoe and
leather industry association of Wenzhou.
Wenig was quoted by Xinhua News Agency as saying that "it is our
first face-to-face contact with Chinese enterprises. Both sides
should try their best to exchange views. And the venue to do this
is not necessarily confined to the negotiation tables in
Beijing."
Last month EU Trade Commissioner Peter Mandelson claimed that
Chinese and Vietnamese footwear exporters conducted
"State-supported dumping" in the EU market and caused serious
injury to the European shoemaking industry.
He 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 said in European media 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 member states but the outcome is not known.
(China Daily March 15, 2006)