HANOI - The American Apparel and Footwear Association (AAFA), a US footwear industry group, has joined European shoe importers and retailers in opposing the possible imposition of anti-dumping tariffs on shoe imports from China and Vietnam.
The AAFA has urged the European Union (EU) to carefully consider the overall economic impact on the European economy - not just the short term advantages to a small group of shoemakers - of anti-dumping tariffs on shoe imports from China and Vietnam.
Imposing duties on European shoe imports, which account for 80% of footwear sold in Europe, would be "devastating" to European consumers and workers, said AAFA President and CEO Kevin M. Burke. "If the Europeans liked the embarrassing debacle that was last summer's apparel crisis [ed: a reference to the "bra wars" dispute], they will love the nightmare they will create if they do the same thing with shoes," said Burke.
The European Confederation of the Footwear Industry, representing European shoe makers, filed a lawsuit against shoe importers from China and Vietnam, suggesting an anti-dumping margin of 130%. The Vietnam Leather and Footwear Association (Lefaso) has rejected the dumping allegations. Lefaso chairman Nguyen Gia Thao said most of the shoe makers in Vietnam are subcontractors forinternational corporations, so they completely depend on subcontractors' orders, and have no authority to decide consumer prices.
Currently it is very difficult for Vietnam's shoe makers to secure contracts, as importers are uncertain of the outcome of the pending EU decision. The EU market accounts for 70% of Vietnam's total footwear exports.
The EU's provisional decision to impose anti-dumping tariffs has faced opposition from retailers and importers. Brussels-based Footwear Association Importers Retailchains, the European Branded Footwear Coalition and the Federation of European Sporting Goods Industries (FESI) have filed formal complaints with the EC. FESI represents Adidas, Nike, Puma, and many other athletic brands. The Netherlands, Sweden and Denmark have also formally opposed the tariffs.
EU nations are expected to discuss possible countermeasures at a meeting on March 9. If approved, provisional measures could come into force for six months on April 7 while the EU continues its investigations.
Vietnam's Foreign Ministry denied that the country dumped leather shoes on the European market and called for "objective and fair decisions" on tariffs. "Vietnamese manufacturers do not dump leather shoes in the European market. They are functioning according to the rules of the market economy and fair competition," said Foreign Ministry spokesman, Le Dung. "The Vietnamese government does not intervene and does not [subsidize] business activities."
Dung said that Vietnamese enterprises had actively cooperated with European Union examiners during the inspection. He urged the EU to consider the negative impact tariffs would have on Vietnamese laborers, European consumers, the European footwear retailing industry and footwear companies with business operations in Vietnam.
(Asia Pulse/VNA)
