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UPDATE 1-EU ministers to extend Asian shoe duties-diplomats

Published 12/02/2009, 06:18 AM
Updated 12/02/2009, 06:21 AM

* Diplomats say EU ministers to overturn trade panel vote

* Duties to be extended by 15 months from Jan. 3

* Global brands, big retailers, consumer groups oppose duty

(Adds details and background)

By Darren Ennis

BRUSSELS, Dec 2 (Reuters) - European Union ministers are expected to vote to prolong import duties on shoes from China and Vietnam, overturning a rejection of the plan by a key EU trade panel, EU diplomats said on Wednesday.

The diplomats said Germany, Austria and Malta, which previously opposed the planned 15-month extension, had decided to abstain from the vote scheduled for Dec. 22, leaving a majority of countries in favour of continuing the duties.

If approved, the extended duties of up to 16.5 percent on imports of Chinese leather shoes and 10 percent on those made in Vietnam will come into force from Jan. 3.

The 27-country EU's anti-dumping committee, made up of senior trade officials, voted on Nov. 19 to reject the plan by the European Commission -- which oversees EU trade policy -- to extend the tariffs.

But after weeks of lobbying by the EU executive, ambassadors from the bloc are expected to discuss the plan by the Commission -- which oversees EU trade policy -- on Dec. 17 and a vote by EU ministers will follow five days later, EU officials said.

The Commission first imposed the tariffs in 2006 after European manufacturers complained that they were unable to compete against low-cost producers in China and Vietnam.

The governments of those Asian countries were providing unfair subsidies that lowered costs for domestic manufacturers, the European firms said.

The Commission had also extended such duties in October last year, angering Beijing, many global shoe brands, leading European retailers and consumer groups. (Editing by Dale Hudson) ((Reuters Messaging: darren.ennis.reuters.net@reuters.com; Email: darren.ennis@reuters.com; Tel: +32 2 287 6842))

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