First textiles, now shoes
15/6/2005 9:39
Lynn Chen/Shanghai Daily news
The European Union will
soon start anti-dumping investigations into two types of Chinese safety footwear
in what industry officials fear will be a prelude to a large scale trade war
against Chinese shoe exports. The case could affect several hundred small and
medium-sized shoemakers in Guangdong, Zhejiang and Jiangsu provinces, which
mainly supply made-to-order safety shoes to the European market, said the China
Leather Industry Association. "The Ministry of Commerce has yet to be
informed of the investigation, but the association can confirm EU will start the
probes on the two types of shoes soon based on the information we got," said Wei
Yafei, director of the shoemaking office under the leather industry
association. Wei admitted exports of the two varieties of shoes - textile and
leather safety footwear - to the EU market grew rapidly in the past year due to
bullish market demand. Exports of textile safety shoes to the EU soared 368
percent last year to 45,000 pairs from 2003, according to the association.
Shipments of leather safety shoes bound for the EU rose 63 percent year-on-year
to 6.04 million pairs in the same period. The value of exports was not huge
against China's total foreign trade, with the textile category hitting
US$390,000 last year and the leather category US$52 million, the association
said. "Although the value was not very high and the EU needs one to
one-and-a-half years to probe into the case, we are encouraging companies
involved to actively respond to the case to protect their interests," Wei
said. "We fear it could be a prelude to more cases against Chinese shoe
exports in the future," she added. Prices of such safety footwear range from
US$8 to US$9 a pair, which are not low, but very competitive compared with those
made in Europe, she said. The Ministry of Commerce has warned domestic
shoemakers of pending anti-dumping cases from Western countries for the third
time. Commerce Minister Bo Xilai said the shoe issue will be the next trade
dispute between China and Western countries after textiles. Chinese shoe exports
were closely watched by Western countries after the quotas on seven types of
shoes were eliminated on January 1. "The EU could be using these two types of
shoes to test the Chinese side's response, preparing for further challenges,"
said Lu Sheng, a researcher working with Shanghai WTO Affairs Consultation
Center.
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