CHINA / National
China hits out at EU plan for shoe quotas
(Reuters)
Updated: 2006-07-04 18:55
China on Tuesday criticised proposed new EU curbs on Chinese-made leather
shoes as unacceptable and a violation of world trade rules.
The European Commission, the European Union's executive arm, plans to
recommend a quota-based system for imports of leather shoes from China
and Vietnam, according to EU diplomats.
The so-called deferred duties system would replace preliminary
anti-dumping taxes introduced in April after countries with shoe
industries of their own, led by Italy, complained the imports were being
dumped in the bloc.
Mei Xinyu, a researcher with the Chinese Academy of International Trade
and Economic Cooperation, a Ministry of Commerce think tank, called the
new proposal just as objectionable as the initial dumping ruling.
"The only reasonable thing for the EU to do is to end the anti-dumping
duties," Mei said.
Under the new plan, the EU would levy normal duties on 140 million pairs
of leather shoes each year from China and slap punitive duties of 23
percent on imports beyond that level.
Chinese officials have rejected the idea of such a quota-based system,
saying it would be incompatible with the World Trade Organisation, which
China joined in 2001.
China has suggested it could turn to the WTO's dispute-settlement body
over the issue.
"China has made great efforts to fulfil its WTO commitments, and the EU
should also keep its promises," Mei said.
Zhou Wei, a spokesman for Aokang, a big shoe manufacturer based in the
eastern city of Wenzhou, said the new proposal was unacceptable and
fundamentally no different from the preliminary anti-dumping measures.
One of China's main complaints is that the European Union does not regard
it as a market economy. Without that status, Chinese exporters are more
vulnerable to EU duties because the commission considers costs in other
countries -- where they are often higher than in China -- when
calculating if goods are being dumped in Europe.
"We will continue to fight for market economy status for our company and
for the whole shoe-manufacturing industry of China, together with other
Chinese shoe producers," Zhou said.
Aokang, which sends more than 70 percent of its shoe exports to the
25-member EU, has already spent more than 2 million yuan (US$250,000) on
legal advisers in Brussels.
Aokang is a member of a coalition of Chinese shoe manufacturers that has
been to Brussels to lobby the Commission. An official with the group said
on Tuesday the consortium would continue to negotiate with the EU.
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