European business and consumer groups on Wednesday criticized the European Union (EU) for its decision to impose anti-dumping duties on Chinese and Vietnamese shoes, saying it will harm both consumers and business.

"This is a sad day for Europe. The decision to impose anti- dumping duties on Chinese and Vietnamese shoes is anti-consumers, anti-trade and anti-competitiveness," said EuroCommerce and the European Consumers' Organization in a joint statement.

The two organizations represent European retail, wholesale and international trade sectors and consumers.

EU member states on Wednesday struck a compromise deal to introduce permanent anti-dumping duties on Chinese and Vietnamese leather shoes as from Saturday.

Under the deal, Chinese and Vietnamese shoes will face tariffs of 16.5 percent and 10 percent respectively for two years.

In the joint statement, the two organizations said consumers will have to pay higher prices as a result of this anti-dumping measure.

"Despite best efforts and an extremely competitive retail market in the EU, no company can digest the new duties without increasing prices in the shops," said the statement.

The immediate effect of the measure also makes long-term planning impossible as importers and retailers need one-year predictability to plan their sourcing, it said.

In addition, the new anti-dumping duties shelter uncompetitive producers, do not create one single job, make consumers poorer and hurt companies. They also worsen the EU-China trade relationship, it said.

"Europe's future is in innovative value-added products, not in old-fashioned protectionism."

The footwear case has clearly proved the need for a radical overhaul of the old-fashioned EU anti-dumping law, to make the system more transparent, predictable and balanced, said the statement.

The Foreign Trade Association (FTA), which has trading companies as members in nearly all European countries, also attacked Wednesday's decision of the EU member states.

"This is a major disappointment for European retailers and a serious blow to European consumers," said FTA Secretary General Jan Eggert on Wednesday in a press release.

"The measures that will now be imposed will not benefit the European manufacturing industry but could very likely lead to job losses to retailers and importers and an increase in consumer prices."

The deal were approved by the slightest margin at a meeting of permanent representatives of the 25 EU nations in Brussels. Nine countries voted in favor and 12 were against, with four countries abstaining. Under EU law, abstentions in such cases count as in favor of the proposal as they do not oppose it.

The FTA expressed reservations over the way the decision was made, calling the voting system "a peculiarity."

"This type of wheeling and dealing involved in implementing European Commission legislation such as anti-dumping duties must stop," commented Eggert.

"This decision will affect millions of ordinary consumers across the European Union. The way in which it has been taken is an illustration of just how necessary the current review of the Anti-Dumping Regulation is and I hope, for the benefit of those consumers, that the Commission considers our views seriously," said Eggert.

The anti-dumping measures will become official after adoption by EU interior and justice ministers on Thursday in Luxembourg and will replace the six-month temporary tariffs put in place in April 2006. The voting in Luxembourg is mere formality.

The deal was able to be approved after France revised a European Commission proposal, under which the same tariff rates would be in place for five years.

(Xinhua News Agency October 5, 2006)