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China praises EU panel's rejection of shoe duties

Published 11/20/2009, 03:27 AM
Updated 11/20/2009, 03:30 AM

BEIJING, Nov 20 (Reuters) - China on Friday welcomed a decision by a European Union trade panel to reject an extension of dumping duties on shoes from China, saying it was a mark of the EU's commitment to free trade.

The EU's anti-dumping committee voted to reject a European Commission proposal to extend the duties on shoes from China and Vietnam, much to the relief of major retailers.

"That the majority of member states asked for an end to the anti-dumping duties is a reflection of how the EU at present has a strong vision in its support for free trade and its opposition to trade protectionism," the Chinese Ministry of Commerce said in a statement on its website (http://www.mofcom.gov.cn).

EU ministers must decide next month whether to uphold Thursday's vote or take the unusual step of over-ruling their officials.

The EU first imposed duties for two years in 2006 after EU manufacturers accused China and Vietnam of unfairly subsidising their low-cost shoe makers. It extended the duties last year.

To avert another "shoe war" and further damaging already tense economic relations with China, the Commission has now proposed a 15-month extension instead of the normal five-year term for what are known as "definitive duties".

China and the EU will hold an annual summit on Nov. 30 in the eastern Chinese city of Nanjing, with European concerns about China's huge trade surplus likely to be part of the agenda.

Top euro zone officials will use the meetings to urge China to move toward a more flexible exchange rate, EU Monetary Affairs Commission Commissioner Joaquin Almunia said on Thursday. (Reporting by Simon Rabinovitch; Editing by Alan Wheatley and Alex Richardson)

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