A charge of dumping against Chinese protective footwear makers by the European Union (EU) has been dropped and the leather shoemakers now await the final ruling in their case.

 

The EU dumping charge against protective footwear imported from China was terminated after the European Confederation of the Footwear Industry formally withdrew its complaint, the EC explained.  

 

Chinese businesses had testified to the EU that the exports didn't harm Europe's shoemaking industry, said Li Fayin, a lawyer with Beijing-based Allbright Law Office. The firm is representing the shoe manufacturers involved in the case.

 

"This is the first time Chinese enterprises have won an anti-dumping case in the EU market by non-injurious appeal since cigarette lighter manufacturers were successful in 2003," he said.

 

The success is the result of collaboration between the industry, other organizations, governments and lawyers. The Chinese businesses were proactive in their stance and almost all large protective footwear makers responded to the charges.

 

They presented sufficient facts to the EC to support the case that China's exports were not damaging the business of European manufacturers, Li said. "The EC didn't give a preliminary ruling on protective footwear as in other dumping cases and its reason for that was based on the Chinese enterprises' appeal," he explained.

 

Major protective footwear makers in China also persuaded their EU material suppliers to lobby the EC. Li said the case set an example for other Chinese enterprises involved in anti-dumping cases.

 

The EC adopted a proposal by Trade Commissioner Peter Mandelson on Wednesday for a 16.5 percent duty on leather shoes imported from China and 10 percent on those from India.

 

The EC said on its website it found "both dumping and injury to EU producers" in its investigation. The proposal has been given to EU members for a final vote which will be completed within a month. If it's passed it'll be effective for five years.  

 

EU Trade Spokesman Peter Power said: "The commission has fulfilled its obligations and responsibilities and has brought forward a sound proposal. It's now for member states to debate their position among themselves."

 

The plan was rejected by a narrow margin in July at advisory level. An earlier "quota plus tariff" proposal by Mandelson was also turned down by EU members in July.

 

The EU launched dumping charges against the Chinese manufacturers last July amid concerns that increasing footwear imports would flood markets and hurt European shoemakers.

 

Europe is China's largest footwear market in both value and volume. The EU now implements a "phase-in" of the tariff system as a result of its preliminary ruling on the case.

 

(China Daily September 1, 2006)