Mandelson defies critics on shoe duties

The European Commission’s proposals to limit cheap imports of leather shoes from Asia were yesterday (30 August) presented unchanged, despite having previously been rejected by a coalition of 14 member states. A flurry of diplomatic activity from the Swedish and Italian governments is expected in the run-up to a vote in the Council of Ministers, which must take place before 7 October.

Sweden, which led opposition earlier this month (3 August) to blanket duties of 10% and 16.5% on imports from Vietnam and China respectively, remained defiant. "Our position hasn’t changed. The fact remains the same. These are measures that we don’t like," said a Swedish diplomat. "In the beginning, we were quite alone. Now there are a number of member states behind us. We have been very active so far."

Italy, which supported the measures along with other shoe-manufacturing countries such as Poland and Portugal, is expected to intensify its efforts to swing the vote in favour of the proposals. "The Italians have also been very active, sending their diplomats to ministries in foreign capitals," said the diplomat, signalling that new member states could be more easily swayed in favour of proposals ahead of the vote. Italy had rejected the Commission’s first proposal to impose higher duties of 16.8% and 19.4% for Vietnam and China respectively with an 80% exemption rate.

Trade Commissioner Peter Mandelson is determined to push through the controversial duties, warning that countries voting against them could face legal action. This course of action has not been followed since 1998. "If we tolerate dumping, we send the signal that Europe tolerates unfair competition and unfair trade," said Peter Power, Commission spokesperson for trade. "Anti-dumping measures will not save uncompetitive European producers - but they will create a market in which competitive advantage is exercised fairly."

The European Branded Footwear Coalition, which has charged the Commission with unfair discrimination against the high-quality footwear industry, urged member states to resist political pressure and reject the proposal. The measures would increase prices for consumers, harm EU employment in the research and development and retail sectors and affect the long-term competitiveness of the European footwear industry, it said.

Lourdes Catrain, an associate at law firm Hogan and Hartson, which is representing the coalition, said: "If there is something that characterises this case, it is that it is very unusual. Three proposals in six months is extraordinary. I can understand that now the Commission is saying ‘well, this is it’. At this stage, nothing surprises me."

The European Commission’s proposals to limit cheap imports of leather shoes from Asia were yesterday (30 August) presented unchanged, despite having previously been rejected by a coalition of 14 member states. A flurry of diplomatic activity from the Swedish and Italian governments is expected in the run-up to a vote in the Council of Ministers, which must take place before 7 October.

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