No cheap shoes from China

The European Commission has adopted a proposal for definitive anti-dumping duties on certain leather shoes from China and Vietnam. It claimed that both countries were guilty of selling shoes in the EU cheaper than in their domestic markets. This is called dumping. There were also accusations of state aid by both Asian countries to their shoe-making industry.

The Commission claims further that this practice is injuring EU producers. To reverse the damage it is proposing a duty of 16.5% for China and 10% for Vietnam for certain leather shoes. This proposal now goes to the EU member states, who have one month to consider it for adoption.

In a press statement, the Commission claimed that its proposal represents its best efforts to reconcile the different economic interests at stake in Europe while carrying out its responsibilities and respecting its legal obligations and the facts determined by the Commission investigation.

EU trade spokesman Peter Power said: "This case is complex and highly sensitive. It affects a variety of economic interests in Europe and in different member states. The Commission was asked to launch this investigation and did so in accordance with Community law. The investigation was both thorough and exhaustive."

He added: "The Commission has fulfilled its obligations and its responsibilities and has brought forward a sound proposal. It is now for member states to debate their position among themselves. It is not first and foremost the Commission's role to seek a political balance but to reflect the facts as required by EU law."

The surprising element in this whole affair is that China and Vietnam have allowed matters to go this far when they needn't have done so. Both countries enjoy a competitive advantage in labour costs and in sources of raw materials for this industry that would make their shoes just as competitive on European markets.

On the other hand, the European shoe industry must seek ways to increase its competitiveness. One only hopes that the anti-dumping measures announced by the Commission, if approved, will be just enough to redress the unfair practices and not to further curtail European consumers from access to cheaper shoes.