Dumping duty on Viet Nam shoes draws fire

Dumping duty on Viet Nam shoes draws fire (11-11-2009) HA NOI — If the EU extends anti-dumping duties against footwear from Viet Nam and China, it will put Europe’s commercial relations with both countries at risk in the long term, warned British First Secretary of State Peter Mandelson. Mandelson told The Financial Times that there was no evidence that the alleged dumping was hurting European manufacturers, which had seen a recovery in their market share, or that consumers were being harmed, so there was no longer any justification for the duties. Anti-dumping duties on footwear had created a division within the EU since first applied to limit low-price imports from China and Viet Nam, allegedly eating into the market share of small European manufacturers, particularly in Italy and Spain, explained Mandelson, who initiated the measure in 2006 when he was EU trade commissioner. Tariffs of 16.5 per cent on Chinese imports and 10 per cent on Vietnamese imports were set for a two-year period instead of the typical five, reflecting the deep misgivings of other member states, such as the UK and the Netherlands, which have derided them as protectionist, he said. Major footwear makers, such as Clarks and Adidas, have also opposed the measures. The European trade commissioner last month issued a preliminary recommendation for a 15-month extension, arguing that European market share had only just begun to recover. The European Commission and member states were expected to reach a final decision on the matter on November 19. —…