Industry News

China Seeks WTO probe of EU Duties on Shoes

Surfersvillage Global Surf News, 12 April, 2010 : - - The European Commission rejected Beijing's call for a formal investigation by the World Trade Organization of of EU charges on Chinese shoes. In December, Brussels extended import duties of up to 16.5% on Chinese shoes, claiming that they unfairly undercut the cost of EU producers.

But Beijing lodged a complaint with the WTO in February and on Monday called for a formal inquiry panel.

The case is being closely watched because it is only the second time that Beijing, which joined the WTO in 2001, is seeking to use the world trade body to challenge EU tariffs following a formal complaint last summer about duties on metal fasteners. Analysts see this as evidence of a more aggressive policy from Beijing.

"The Chinese Government has sent a letter through its WTO mission requesting the set-up of a panel concerning the EU anti-dumping action on shoe imports from China," the commerce ministry in Beijing said.

"Part of the EU's anti-dumping laws discriminate against China and the EU anti-dumping probes and ruling over China-made leather shoes lack fairness and transparency.

"There is no damage done to the EU shoe industry. Extending the anti-dumping measures would not benefit the EU shoe industry. Rather it will only hurt the interests of consumers in the EU."

Commission spokeswoman Maja Kocijancic retorted: "The European Commission strongly rejects China's claim made today that the EU's anti-dumping measures against certain footwear from China are not in line with the EU's WTO obligations.

A spokesman for trade issues at the European Commission added: "Anti-dumping measures are not about protectionism. They are about fighting unfair trade."

The Federation of European Sporting Goods Industry (FESI) last month began legal action against the European Commission over its duties on shoes from China and Vietnam. FESI, whose members include brands such as Adidas and Nike, estimated that the duties had cost nearly €1 billion since being introduced in 2006.

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