Chinese School - 'EU shoe tariffs will affect jobs'

BIZCHINA / Biz Who

'EU shoe tariffs will affect jobs'

(China Daily)
Updated: 2006-10-10 08:43

The European Union's decision to impose anti-dumping tariffs on imports
of Chinese leather shoes is expected to affect 70,000 jobs in China,
according to an official at China's Ministry of Commerce.

Lu Jianhua, director of foreign trade department of the Ministry of
Commerce
The European Union's 16.5 per cent tariff on China-made shoes, which came
into effect on Saturday, would affect Chinese exports worth US$730
million and over 70,000 Chinese jobs, said Lu Jianhua, director of the
ministry's foreign trade department.

He said the country's footwear exports to the European Union had been
affected since the economic bloc began to impose temporary tariffs on
Chinese leather shoes in April.

The European Union voted last week to slap a 16.5 per cent tariff on
shoes made in China and a 10 per cent levy on those made in Viet Nam for
two years, claiming that companies from the two countries dumped their
products in the EU market.

In its latest comments, the government restated its dissatisfaction with
the EU decision.

"China isn't dumping shoes in Europe," said an unnamed official at
Ministry of Commerce's fair trade bureau.

He said the EU anti-dumping measure disturbs a long-term trade
relationship, adding that it will be difficult for the European shoe
firms investing in China to avoid suffering losses.

The official added that the decision violated the World Trade
Organization's principles of free and fair trade.

"China's shoe industry is a competitive sector and most shoe exporters
are either private or foreign-invested enterprises," he said. "They
cannot afford to sell at prices below their costs."

The measure was passed by a vote of 13-12, which reflected the intensity
of the debate within the European Union.

The ministry official said China's growing shoe exports to the EU market
are a result of the Chinese industry's competitive advantages and
European manufacturers losing their advantages both in terms of costs and
technology.

(China Daily 10/10/2006 page10)

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