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Anti-dumping duties on footwear should not be approved - GRTU

The European Commission’s proposal of further extending anti-dumping duties on footwear imports from China and Vietnam should not be approved, the Chamber of Small and Medium Enterprises,GRTU said.

In a letter to Foreign Minister Tonio Borg and Finance Minister Tonio Fenech, the GRTU said that in 2006, when there had been a discussion on whether Malta should vote in favour or against anti-dumping duties on footwear imports from China and Vietnam, it had made it clear that Malta should block this unjust European imposition.

The authorities had decided to ignore the GRTU’s advice and following lengthy political bargaining between member states, the EU imposed these duties for two years.

When they were set to come to an end last year, domestic producers requested an expiry review and this was currently under investigation. As a result the duties were still in place and could be extended if the EU gave in to protectionist pressures.

“GRTU today retains the same position held in 2006, we are not for protectionist measures, especially were Malta has only to lose.

“Anti-dumping rules impose duties on imported products deemed to be below cost price, thus making imports more expensive and driving up prices in our stores,” it said.

The chamber said that in the current crisis, citizens were right to expect the EU to terminate the measures. Malta was an importing country in the sector and retailers and consumers were being made to pay extra hefty costs to protect the few European producers.

GRTU said that last year, Malta imported €604,000 of footwear from China and Vietnam covered by the measures.

These imports accounted for around 80 percent of the volume of Malta’s footwear imports from outside the EU.

Overall, the value of Malta’s imports from non EU countries was virtually unchanged between 2005 and 2008 with the decline in imports from China being diverted to Indonesia and Brazil.

The GRTU said that Malta’s import bill increased by around €72,000 a year and costs to consumers far outweighed any benefit to domestic producers.

If extended for a further five years, the measures could cost the Maltese economy at least €390,000.

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