A key panel of European Union trade officials voted today to reject a European Commission proposal to extend dumping duties on shoes from China and Vietnam.

"Fifteen member states opposed the plan, 10 supported the Commission and two countries abstained," one of the sources told Reuters.

The EU's executive Commission still intends to put the proposal to a vote of ministers next month despite the defeat in the anti-dumping committee.

In Malta, the decision was welcomed by the GRTU.

"After 15 years of protectionism in the footwear sector, the current antidumping duties on imports from China and Vietnam will hopefully end in January 2010. As shoes are essential items, this is a good day for all Europeans. Now we expect that today's 'no' will be confirmed also at ministerial level," the GRTU said.

In October last year, the Commission -- which oversees trade policy for the 27-country European Union -- extended duties of up to 16.5 percent on imports of Chinese leather shoes and 10 percent on those made in Vietnam, pending a review.

The European Footwear Alliance also welcomed the decision.

“Today’s outcome is a vote in favour of European business, free trade and, most importantly, European consumers” said Manfred Junkert, Director of the Federation of the German Footwear Industry. “We expect the European Commission to draw its own conclusions and to withdraw its proposal to extend the duties with immediate effect.”