China's shoe exports are likely to be hit this year by
anti-dumping tariffs imposed by the European Union (EU), according
to a senior trade official.
The tariffs have hit orders for leather shoes at the 99th
Chinese Export Commodities Fair (CECF), due to open this weekend in
Guangzhou, according to Xu Bing, deputy secretary-general for the
exhibition.
He said that deals signed with EU buyers were expected to
decrease.
The EU officially launched a 4.8 percent provisional tariff on
imports of Chinese leather shoes recently, claiming these products
were sold on the EU market at prices below the cost of making
them.
The European Commission said it had "clear evidence of disguised
subsidies and unfair state intervention in the leather footwear
sector in China and Viet Nam."
The tariffs will gradually increase to nearly 20 percent by
October.
Many domestic footwear companies have joined together to defend
their sales to Europe.
Xinhua News Agency reported that more than 150 shoemakers in
China formed an alliance earlier this month, jointly raising 3
million yuan (US$375,000) to contest the EU's decision.
Fifteen companies were selected to form an executive committee
to lead the alliance's fight against the EU's dumping claim.
The alliance will argue exports have not harmed the European
shoemaking industry.
If they succeed the European Commission will cancel the current
punitive duties collected from made-in-China shoes. If they fail,
the duties will continue for at least a year.
It is not the first time that participants at the CECF have
suffered from trade protectionism from abroad.
A previous well-known target was China's textile industry, which
was criticised last year.
The United States last year adopted safeguard measures against
imports of Chinese textiles and garments, restricting the annual
growth of imports for certain Chinese textile products to under 7.5
percent.
When the 98th session of the CECF was held last October, the two
governments had not yet reached an agreement over textile
products.
According to statistics from the commerce ministry, contracted
garment exports to the US stood at US$2.5 billion at the last
session, down 13.8 percent from the 96th show in the autumn of
2004.
US visitors to the textile section have declined sharply and
contracts with US buyers have dropped by 38.3 percent from the 96th
session.
CECF, the largest export exhibition of China, attracts foreign
buyers from all over the world, who place both short-term orders
for the coming months and long-term ones for future years.
(China Daily April 14, 2006)