Chinese shoemakers could sue EU over tariffs

BEIJING, Oct 14 (Reuters) Chinese shoemakers are expected to lodge lawsuits by the end of the month in Europe opposing an EU decision to impose anti-dumping duties on shoe imports, a state newspaper said today.

An alliance of companies met in the southern city of Guangzhou this week to work out how best to offer legal and financial support to some 150 Chinese firms affected by the new tariffs, the Beijing Times said.

It quoted an official with the alliance as saying law suits had to be lodged individually by companies as opposed to as a group, according to EU rules.

After months of internal argument between protectionists and free traders, the European Union agreed this month to impose duties of 16.5 per cent for leather shoes from China and 10 per cent for footwear from Vietnam for two years.

China complained that the decision was based on neither fact nor law, and promised to take appropriate action, though it did not specify what.

Shoe executives and officials from the Chinese Commerce Ministry are expected to meet this weekend to further discuss the matter, the Beijing Times said.

But the International Business Daily, published by the Commerce Ministry, called on the industry to take a measured approach to the duties, and not act rashly.

''Legally speaking, it is possible the decision could be overturned,'' it said.

China has suggested in the past it could turn to the World Trade Organisation's (WTO) dispute-settlement procedure over the issue.

The duties could affect the jobs of 70,000 people in China, the Beijing Times added.

REUTERS DKB BD1012