Malta's U-turn on Asian shoe tariffs

Malta has confirmed its U-turn on a European Commission proposal to extend protective levies on shoe imports from China and Vietnam for a further 15 months, helping a majority of EU member states get the upper hand and impose this extension.

During a vote taken in Brussels during the last Council meeting for this year, Malta, together with Austria and Germany changed their original position from a "no" to an "abstention", unblocking the way for this extension to go through.

During an experts meeting held last November on the same issue, Malta had stated that it was against imposing further tariffs. However, it then changed its position following intense lobbying from shoe-producing countries, particularly Italy and France.

Hours before the final vote, the GRTU had appealed to the government to stick to its original position against the extension of imposing protective tariffs. However, the GRTU's final appeal was unheeded as Malta still abstained during the crucial vote.

Through its decision, which is being justified as a counter-measure to state aid given by China and Vietnam to their shoe producers resulting in uncompetitive prices, the EU will be imposing anti-dumping tariffs of 16.5 per cent in the case of China and 10 per cent for Vietnam on all imports of adult leather shoes imported to the EU. Children's and sports shoes are exempt.

Following the first signals of Malta's change of heart, earlier on this month, the GRTU slammed Malta's decision calling the U-turn as "disgraceful".

The GRTU's director general, Vince Farrigia had told The Times that the island's decision was the result of Italian pressure on Malta.

"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.

Rejecting these allegations, the government had justified its change in position by stating that Malta's final stance was taken after considering a provision made by the Commission that this extension will be a final one and will be limited to just 15 months.

According to GRTU figures, since 2006, when the duties were first introduced, Malta imported €604,000 worth of footwear from China and Vietnam covered by the measures or around 80 per cent of the volume of Malta's footwear imports from outside the EU. 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.