Chinese shoemakers plan to file a suit against the EU contesting
the legal and factual basis of new EU anti-dumping measures.
"We have retained our attorney and will file a suit with the
European Court of Justice," according to sources with Aokang Group,
a shoemaker based in Wenzhou City, Zhejiang Province. "We will fight to the end
to safeguard our rights by following international rules."
But analysts say it is hard to predict how the European Court
will decide.
The EU adopted a new policy on October 5, which reduces the
normal five-year anti-dumping term to two years and imposes
anti-dumping duties of 16.5 percent on Chinese shoemakers.
China's Ministry of Commerce told Xinhua on Monday the EU
decision to impose anti-dumping duties on China-made leather shoes
contradicts the principle of free and fair trade advocated by the
World Trade Organization (WTO).
Wu Zhenchang, chairman of Chuangxin Shoemaking Company in Panyu,
south China's Guangdong Province, and sponsor of a union of
Chinese shoe producers fighting EU anti-dumping measures, said more
than 70 percent of shoe-related orders will probably shift to
Southeast Asia in the next two years because no European dealer
would be willing to pay the newly-imposed tariff.
"This will affect Chinese shoemakers' competitiveness because
European shoe dealers will develop alternative sources of supply in
two years," Wu said.
According to EU figures, China exported 1.25 billion pairs of
shoes to Europe in 2005 and has 50 percent of European market
share. Chinese figures show that China exported 700 million pairs
of shoes to Europe in 2004.
Wu Chunyue, general manager of Aokang Group, estimated that
China's exports of shoes to the EU will plummet by 40 percent in
two years.
China has lodged complaints related to anti-dumping issues with
the European Court in the past but only one decision was made in
China's favor.
Experts have suggested submitting the matter to the WTO if China
believes the EU anti-dumping measures violate WTO principles.
(Xinhua News Agency October 10, 2006)