China has threatened the European Union with legal action after EU governments voted to renew punitive anti-dumping tariffs against imports of Chinese and Vietnamese footwear.
The tariffs, intended to protect European leather manufacturers from below-cost Asian competition, were renewed for 15 months yesterday despite a recommendation by European trade officials that they be scrapped. The duties, first imposed in 2006, amount to a 16.5 per cent import tax on leather shoes from China and a 10 per cent levy on Vietnamese shoe imports.
China said that it would take its challenge to the World Trade Organisation (WTO). China will appeal to the WTO s dispute resolution mechanism and take corresponding steps to earnestly protect the legal rights of Chinese industry, a spokesman for the Chinese Commerce Ministry said.
The decision over whether to renew the anti-dumping measures provoked a loud debate, in which Europe s big retailers clashed with supporters of Europe s struggling footwear businesses, mainly located in Mediterranean nations. The argument set northern states, including Britain, the Netherlands, Sweden and Denmark against their southern peers, notably Italy, Portugal and Spain.
Lord Mandelson, the Business Secretary, said that the continuation of the measures would damage trade. I hope the EU will in future see the importance of turning its back on protectionism, he said.
The tariffs are opposed by multinational footwear groups, such as adidas and Nike, which typically source their products from East Asia.
The European Council said in its decision that EU manufacturers were adapting their business models and the measures would be an additional safety net, allowing more time for the transition. It said that shoppers would not be disadvantaged, that importers were healthy and that retailers were in a strong position.
There was no noticeable price increase following the imposition of the anti-dumping duties, the EU said.
