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Shoe exports: EU penalties have no foot to stand on

By Jiang Wei and Dai Yan (China Daily)
Updated: 2006-04-07 05:49

He noted that the European petitioner listed only 6 of 15 injury evaluation indicators required by the WTO Anti-dumping Agreement.

"So the EU lacks adequate evidence to file the case," Gao said. Since no harm has been done to the EU industry, there is no reason for the case, he said.

The penalties were also against EU companies' interests, Gao pointed out.

According to Chinese statistics, footwear producers from the original 15 EU member states have set up 478 plants in China with an actual direct investment of US$737 million; and they also export to the European market.

"Anti-dumping measures against Chinese footwear exporters will surely impair the profits of EU footwear producers and investors in China," Gao said.

Chinese footwear exports are basically low- and middle-end products, while the EU produces mostly high-end goods, he said.

"Meeting different needs of consumers, the two kinds of products are not in direct competition; and have obvious differences in sales channels and market segmentation. The anti-dumping measures are not only unnecessary but also harmful to the interests of EU middle- and low-end consumers," he explained.

Gao said footwear exports from China generate lucrative returns for EU importers and retailers and provide a large number of jobs in the economic bloc.

The development of the Chinese footwear industry also ensures EU exports of shoe-making machinery, leather and other raw materials every year.

According to Chinese customs statistics, in the first 11 months of 2005, leather imports from the EU reached US$570 million, a year-on-year increase of 27 per cent. China imported US$54.04 million worth of shoe-making machines from the EU in 2004, up 26 per cent year-on-year.

Gao urged the EU to treat Chinese firms fairly and re-evaluate the whole case to ensure the development of shoe trade.

Last July, the EU initiated anti-dumping investigations into leather shoes worth US$730 million from China the largest single anti-dumping case between the two economies.

According to statistics from the Ministry of Commerce, the EU is not only China's largest trade partner but also a major source of dumping charges against China.

(China Daily 04/07/2006 page1)