The European Unions anti-dumping tariffs have thrown a wet blanket on footwear transactions at the first phase of the 99th Chinese Export Commodities Fair.
One of the symptoms is the decrease of buyers from the European Union.
Only 19,711 European buyers were present at the first phase of the fair, when footwear was on display. The number was 13.3 per cent fewer than the 98th cession last October.
Many European buyers tried very hard to drive a bargain but few exhibitors were willing to accept lower prices.
"Most European buyers were cautious when they placed an order," said Xu Bing, deputy secretary-general and spokesperson of the fair.
The European Commission (EC) announced in late March that it would place anti-dumping duties on leather shoes from China and Vietnam, despite the fact that only three countries voted in favour of the tariffs, 10 voted against and 11 abstained.
Disagreement
EC said it had "clear evidence of disguised subsidies and unfair state intervention in the leather footwear sector in China and Vietnam."
The tariffs will gradually increase to nearly 20 per cent by October.
Many domestic footwear companies have joined together to defend their sales to Europe.
Xinhua News Agency reported that more than 150 shoemakers in China formed an alliance earlier this month, jointly raising 3 million yuan (US$375,000) to contest the EUs decision.
Fifteen companies were selected to form an executive committee to lead the alliances fight against the EUs dumping claim.
The alliance will argue that exports have not harmed the European shoemaking industry.
If they succeed, the European Commission will cancel the current punitive duties levied on made-in-China shoes. Otherwise, duties continue for at least a year.
An executive of Hellenia Shoes in the Netherlands, who identified herself as Helen, said consumers would soon have to pay more, which may affect the sales of her company that has been selling Chinese shoes for 10 years.
"Prices of Chinese shoes are lower and the quality has been improving, making them popular in the Netherlands," she said.
International buyers at the fair generally place orders for about a year starting from July.
In Europe, shoe importers and retailers expressed displeasure with the EUs duties.
Susan Sjoekvist, media director of Wedins, one of the largest Swedish shoe retailers, said the prices of leather shoes would rise soon and consequently, customers would have to look at other options.
Earlier instance
It is not the first time that participants at the CECF have suffered from trade protectionism from abroad.
Chinas textile industry, another well-known target, was criticized last year when the United States adopted safeguard measures against imports of Chinese textiles and garments, restricting the annual growth of imports for certain Chinese textile products to under 7.5 per cent.
When the 98th session of the CECF was held last October, the two governments had not yet reached an agreement over textile products.
According to statistics from the Ministry of Commerce, contracted garment exports to the United States stood at US$2.5 billion at the last session, down 13.8 per cent from the 96th show in the autumn of 2004.
US visitors to the textile section have declined sharply and contracts with US buyers have dropped by 38.3 per cent from the 96th session.
CECF, Chinas largest export exhibition, attracts foreign buyers from all over the world, who place both short-term orders for the coming months and long-term ones for future years.
