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Shoemakers stay calm at EU's anti-dumping duty imposition

(Xinhua)
Updated: 2006-10-08 10:28

Disappointed and dissatisfied as they are, Chinese shoemakers have stayed calm as the European Union (EU)'s two-year anti-dumping duty on China-made leather shoes took effect on Saturday.

Under the EU's new policy, European shoe importers will pay a 16.5 percent tariff on Chinese-made leather shoes and 10 percent on shoes made in Vietnam.

Children's shoes, which were not covered by the provisional anti-dumping duties introduced since April 7, are now subject to the definitive duties.

According to EU figures, China exported 1.25 billion pairs of shoes to Europe in 2005, however the exports may drop 10 percent after the introduction of the levy, members of the industry have said.

"We're not surprised at the anti-dumping duty levy at all. After all, it's not the first time," said Xu Hongzhen, vice manager-general of the Wenzhou-based Jierda Shoes-making Com., Ltd., after a grand party held by the company to celebrate the traditional Moon Festival on Friday night.

In April, the EU imposed six-month tariffs of 19.4 percent on leather shoes from China and 16.8 percent on those from Vietnam.

"Ever since then, I know a long-term punitive duty will come sooner or later, though it is extremely unwise for EU to do so," said Xu.

As an important shoe manufacturing base on the Chinese mainland, Wenzhou in eastern Zhejiang Province is home to nearly 4,000 shoemakers, employing more than 400,000 workers and producing 600 million pairs of shoes annually.

Last year, Wenzhou exported 438 million pairs of shoes at a combined value of 1.58 billion U.S. dollars. One third of the exports were sold to the EU. Wenzhou's leather shoes export to EU accounts for about one fourth of China's total to EU.

But customs statistics show that in June and July, the shoes export from Wenzhou dropped by 7.17 percent from the year-earlier level.

"At the highly globalized international market today, the 16.5 percent anti-dumping duties will not only drag China's shoemakers down from their superior position amidst fierce competition but also make it hard for the medium- and small-sized firms to survive," said Xu.