Consumers, importers resist EU duties on China-made shoes

Importers of sports shoes from the Far East are asking the government to take a stand against the European Union's proposals to impose anti-dumping duties ranging from 10 to 16.5 per cent.

At a press conference yesterday, the Chamber of Small and Medium Enterprise, GRTU, said the duties were protectionist and went against the fundamental principles of free market which the EU itself advocated.

Member states will on Thursday vote on the EU Commission's proposal to impose tariffs on sports shoes from China and Vietnam on grounds that huge imports at cheap prices are giving an unfair competitive advantage to the exporting countries to the detriment of European shoe makers.

GRTU director general Vince Farrugia said that, if enforced, the tariffs would increase prices for consumers, adding that protectionist arguments do not make sense in a free market.

"We did not join the EU to have protectionism but to have access to a free market," Mr Farrugia said, insisting that the Maltese government should voice itself clearly against the anti-dumping duties being proposed.

Mr Farrugia said that since Malta does not have a shoe-making industry, there are no jobs at stake as could be said for other EU states that are favouring the anti-dumping tariffs. "The contribution to GDP of producers in this sector is dwindling in Europe while value added in retail and trading opportunities are increasing," he said.

Despite recommendations the GRTU had made, the government abstained and did not oppose the EU Commission's proposal at a meeting of the Anti-Dumping Committee on August 3.

Standing by the GRTU is the Maltese Consumers' Association, which is arguing that consumers in the lower income bracket buy the shoes in question and that the proposed duties would increase prices. Emmanuel Zammit, from the Consumers' Association, also called on the government to vote against the proposals.

The local representatives of Nike, Puma and Adidas, who were present for the press conference, did not rule out having to lay off employees if they lost competitiveness due to an increase in prices. Surely, they said, the duties they would have to pass on to the EU would have to be included in the price paid by consumers.

The EU anti-dumping proposal is being opposed on an EU level by Euro Commerce, the voice of commerce in Europe, BEUC - the European consumer organisation and other retailers' organisations that have lobbied against the proposed duties over the past weeks.