GRTU on Chinese shoe tariffs

The Chamber of Small and Medium Enterprises - GRTU is angry at the government for abstaining in a crucial preliminary EU vote that would extend anti-dumping tariffs on shoes imported from China and Vietnam by a further 15 months.

"Malta has changed its vote from a no to an abstention and this is disgraceful," a very upset Vince Farrugia, director general of the GRTU, said.

"The decision to change tack is not in Malta's interests and was just made to please the Italian government after it put pressure on Malta. At the same time, we have thrown out our free trade principles just to please the Italians who have failed to restructure their shoe manufacturing industry in the past years," Mr Farrugia said.

On Wednesday, the European Commission decided to propose a further 15-month extension on import duties on Chinese and Vietnamese shoes imported into the EU on the pretext of anti-dumping and uncompetitive practices being used by both countries.

If adopted by member states in a final vote to be taken by the end of this month, Excise duties of up to 16.5 per cent on Chinese leather shoes imports and 10 per cent on those made in Vietnam will be renewed from the beginning of January.

Until a few weeks ago, the majority of member states were against this extension but Germany, Austria and Malta on Wednesday indicated they would be abstaining, opening the door for the extension proposal to go through.

Asked to explain this sudden change of heart, a government spokesman rejected the accusation that Malta succumbed to Italian lobbying and said the position was taken after considering a provision made by the Commission that the extension would be a final one and would be limited to just 15 months.

"We just wanted to show a bit of flexibility in our position. We were assured that this is the last time that these tariffs are to be imposed," the spokesman said. Mr Farrugia insisted that Malta should have defended its principles of free trade and not give in "to those who have remained inefficient all the way".

Mr Farrugia feels that the shift ridiculed Malta vis-a-vis the rest of the EU member states.

"If we are to make Malta the logistics hub for the East's entry into the EU, we would stand to gain more from China than stupidly supporting or abstaining on defunct protectionist stands. We lost our shoe industry because we restructured at our own expense. Italy should not expect us to pay for their failures," he insisted.

According to GRTU figures, since 2006, when the duties were first introduced, Malta imported €604,000 worth of footwear from China and Vietnam or about 80 per cent of the volume of Malta's total footwear imports from outside the EU. The GRTU said Malta's import bill increased by about €72,000 a year and costs to consumers far outweighed any benefit to domestic producers.