NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

UPDATE 2-EU exec asks ministers to extend Asian shoe duties

Published 11/30/2009, 10:49 AM

* Ministers vote Dec. 22 on possible 15-month extension

* Global brands, major retailers, consumers oppose duties

* EU manufacturers say they cannot compete with Asia

(Adds more details, statement)

By Darren Ennis

BRUSSELS, Nov 30 (Reuters) - The European Commission will ask European Union ministers in December to extend dumping duties on shoes from China and Vietnam, despite rejection of the plan by a key EU trade panel, EU officials said on Monday.

Ambassadors from the 27-nation bloc are expected to discuss the 15-month extension proposed by the EU executive -- which oversees EU trade policy -- on Dec. 17 and ministers will vote on it five days later, the officials said.

"The Commission adopted the proposal to extend the duties ... and will now put it to a vote in the council (of ministers)," one EU official told Reuters.

The Commission is expected to announce its plans on Tuesday, the officials added.

The EU's anti-dumping committee, made up of senior trade officials, voted on Nov. 19 to reject the proposed duty extension. Fifteen member states opposed the plan, 10 supported the Commission and two countries abstained.

The EU is often split over dumping cases, with countries supporting freer trade on one side and those worried about low-price competition against their manufacturers on the other.

Brussels proposed a 15-month extension instead of the normal five-year "definitive duties" in an attempt to avert another "shoe war" with member states and any worsening of already tense economic relations with China.

The Commission first imposed the additional tariffs in 2006 after complaints by some European manufacturers, notably those in Spain, Portugal, Italy and Poland, who say they cannot compete against low-cost producers in China and Vietnam.

The European producers accuse those Asian governments of unfairly subsidising their own manufacturers.

OPPOSITION

In October last year, the Commission extended duties of up to 16.5 percent on imports of Chinese leather shoes and 10 percent on those made in Vietnam, pending a review.

Its new plan is opposed by global shoe brands, leading European retailers such as Tesco and consumer groups who want the "shoe taxes" axed given the gloomy economic outlook and fall in consumer spending caused by the financial crisis.

Global shoemakers, led by sports shoe producers such as Adidas, Asics, Nike and Puma, said they were "astonished" by the Commission's decision to extend the duties.

"This points not only to an utter disregard both for the opinion of EU member states and for the interests of European consumers and businesses, but also to a new level of cynicism," the European Footwear Alliance (EFA) said in a statement.

"We condemn the Commission's attempt to ride roughshod over the wishes of the EU member states in the strongest possible terms and call for an immediate end to the anti-dumping duties."

An extension of the duties would take effect on Jan. 3, 2010. (Editing by Dale Hudson and Tim Pearce) ((Reuters Messaging: darren.ennis.reuters.net@reuters.com; Email: darren.ennis@reuters.com; Tel: +32 2 287 6842))

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.