EU firms strike back with bra wars II

European manufacturers of shoes and clothing are planning to resume battle with companies exporting cut-price goods from China, amid mounting allegations that anti-dumping duties imposed last year on cheap imports of leather shoes are being dodged.

The manufacturers, mainly from France and Italy, claim that companies have been taking alternative routes to Europe, often shipping goods through the special administrative region of Macau in the south of China, to circumvent duties of as much as 16.5% on shoes that were introduced last year.

Manufacturers are furious at the complicity of countries adjoining China that have closed their eyes to the problem. "We are analysing what the [European] Commission is saying, but we also have our own sources," said an industry insider, referring to data on trade flows.

"They know what’s entering and what’s going out," he said of countries next to China. If there is monitoring and control, it should not only be on China, but also on neighbouring countries. Everyone knows the rules, so if I’m in a country and see movements with no explanation, I should be questioning what’s happening. There are real sanctions that can be taken against the countries guilty of this type of thing."

An EU diplomat said that the mood was "right" for an investigation into the circumvention of duties. There had, he said, been extensive questions from Italy on the issue, which is to be discussed by trade officials today (26 July).

In parallel, manufacturers of garments and footwear, represented by the European Trade Union Federation of Textiles, Clothing and Leather, are lobbying both for an extension of the anti-dumping duties on leather shoes (also applying to Vietnamese imports), which expire next year, and an extension of quota limits on Chinese textiles, which run out at the end of this year.

Ralph Kamphöner, senior adviser on international trade at EuroCommerce, said that retailers and wholesalers were bearing the brunt of hastily introduced trade-defence measures. Extending the quota limits on Chinese textile goods, which were agreed in 2005 by the EU and China after the controversial ‘bra wars’, would, for example, cause disruption to the many retailers and wholesalers that had already agreed contracts for next year’s supplies.

Likewise, when anti-dumping duties were first imposed on imports of leather shoes last year, retailers and wholesalers were forced to absorb extra costs at short notice, he said. Duties had come into effect three days after being agreed by member states.

Kamphöner said that manufacturers had made a deliberate decision to launch a renewed anti-dumping campaign during the Portuguese presidency. Referring to the quotas on textiles, which he claimed were being reviewed at a late stage, he said that the German presidency would not have sympathised with manufacturers. "Now, under the Portuguese presidency, it may be easier to lobby for an extension of quotas," he said.

The industry insider declined to comment on the timing of his sector’s campaign, but said: "It’s obvious that the Germans don’t have the same approach as the Portuguese, but all decisions will be taken by the Council."

He insisted that the industry was not protectionist. "We are not asking for quotas. We would like the Chinese themselves to consider the necessary measures. We want negotiations. We don’t want to impose measures. It is only if there is no choice left that we want to adopt measures."

European manufacturers of shoes and clothing are planning to resume battle with companies exporting cut-price goods from China, amid mounting allegations that anti-dumping duties imposed last year on cheap imports of leather shoes are being dodged.