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EU advised to reconsider dumping claim
By Jiang Wei (China Daily)
Updated: 2006-02-25 07:23

China has urged the European Union (EU) to re-investigate its dumping claim against Chinese leather shoes in the interest of fairness.


A customer makes a selection of China-made shoes at a market in Yichang, central China's Hubei Province in this August 22, 2005 photo. EU will impose import duties as high as 20 percent on some leather shoes from China and Vietnam starting in April. [newsphoto]
Europe lacks evidence to support its claim that Chinese shoe exporters are dumping goods, Chong Quan, a spokesman for the Ministry of Commerce, said on Friday.

Chong was responding to EU Trade Commissioner Peter Mandelson's latest proposal that called for duties on Chinese leather shoes to increase in phases but quickly.

Mandelson said in a press release that they had found "compelling evidence of state intervention, dumping and injury."

If Mandelson's proposal is approved, the EU will impose a 4.8 per cent penalty duty on leather shoes from China beginning on April 1. The figure will increase to 19.4 per cent by October.

This proposal is scheduled to be discussed earlier next month.

Chong denied the EU dumping charge, saying the EU's plan to levy anti-dumping tariffs on Chinese leather shoes was protectionist and contradicted the trend of trade liberalization.

He called for a review of the decision and asked the EU to treat the Chinese companies fairly.

Denying Chinese shoe makers market economy treatment is particularly unfair, he said.

The European Commission declined to give market economy treatment to 13 Chinese leather manufacturers, which it investigated last September.

As the EU does not yet regard China as a full market economy, China believes it is vital for its enterprises to receive separate treatment in anti-dumping cases. Otherwise, the European side will take the prices of a third country, such as Brazil, as a substitute. Generally labour and material costs are higher in those countries than in China.
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