EU Seen Extending China,Vietnam Shoe Duties By 15 Months-Sources
October 08 2009 - 4:57AM
Dow Jones News
The European Commission is likely to propose a 15-month
extension of controversial duties on shoes made in China and
Vietnam, European Union diplomats said, despite broad opposition
from major shoe corporations and many European governments.
The commission, the E.U.'s executive arm, is expected to argue
that Chinese and Vietnamese shoe companies are clearly shipping
their products to the E.U. at below market prices - especially
compared with the price of shoes made in other developing countries
such as India, Brazil and Indonesia.
The commission is also expected to argue that the duties, which
are 16.5% on Chinese and 10% on Vietnamese shoes, have cost
European consumers only EUR1.50 per pair of shoes.
Global corporations such as Adidas (ADS.XE) and one of Adidas'
main suppliers, the giant Hong Kong-based shoe manufacturer Yue
Yuen Industrial Holdings LTD. (0551.HK), have fought hard to end
the duties.
The commission's proposal will be discussed at a meeting of E.U.
trade experts in October or November and must be approved by the
European Council. If the duties are cleared they will come into
force at the beginning of January 2010.
-By Matthew Dalton, Dow Jones Newswires; +32 2 741 1487; matthew.dalton@dowjones.com