European panel rejects extension of dumping duties on Vietnam’s shoes

A European Union (EU) committee has voted to end dumping duties on leather shoes from Vietnam and China, according to a 19 November Reuters report.  The controversial duties were imposed in 2006 at the behest of upscale European shoe makers.

Although the European Commission – the 27 nation group’s ‘government’ – had recommended they be again extended, reportedly representatives of fifteen member states voted to terminate the duties.

The dumping duties – additional charges of 16.5 percent on Chinese-made shoes and ten percent on Vietnamese-made shoes – have been unpopular with European consumers as well as with major companies that import and sell shoes made in the two Asian nations.

Reuters says the Commission will appeal the committee’s 15-10-2 decision to a vote of ministers next month.

Anti-dumping duties are designed to shield economies from imports sold below cost. Countries must justify duties by proving that the goods were sold below the cost of making them and that they hurt the domestic economy, according to World Trade Organisation rules.  Many experts believe that the European Commission has not offered convincing proofs.

Introduction of the duties led to a 23 percent drop in EU shoe imports from Vietnam.  In 2006, Vietnamese-origin footware exports to the EU totaled 256 million pairs, a roughly ten percent market share.  Meanwhile, Chinese-made shoes held about 60 percent of the European market.

Tags: Vietnam business news, Vietnam Footwear Industry