EU Commission approves dumping duties on Chinese shoes

Brussels, Mar 23: The European Commission formally approved on Thursday (Mar 23, 2006) the introduction of anti-dumping duties on leather shoes imported from China and Vietnam, a plan that has generated protests by both Asian countries.

''The European Commission has today adopted proposals by European Trade Commissioner Peter Mandelson to impose a provisional anti-dumping duty on leather shoes from China and Vietnam,'' it said in a statement.

Brussels has said it found evidence of state intervention helping shoemakers in China and Vietnam and it will impose duties of 16.8 per cent on shoes from Vietnam and 19.4 per cent from China to be phased in over five months from April 7.

Sports shoes and footwear for children will be exempted from the duties.

China and Vietnam have denied their shoe exports are being dumped in the European Union. China has said it might consider a complaint to the World Trade Organisation, which regulates global trade.

Mandelson on Thursday reiterated his willingness to work with both countries ''to address the questions of competitive distortions raised by the Commission's investigation'', the statement said.

The case also generated protests from some of the world's biggest shoemakers that have invested in factories in China and Vietnam, and it split the 25-member EU.

Some countries with shoe industries of their own, led by Italy, pushed for higher duties than those planned by Brussels.

But other countries that traditionally support free trade, especially those in Scandinavia, said no anti-dumping measures were needed.

REUTERS