The duty extensions, expected to come into force on Jan. 1, 2010 will apply to middle and high-end leather shoes–the major export staples of Vietnam’s leather and footwear industry that are currently offered at a more competitive price than those from other countries.

Early information suggested that ten countries voted in favour of the duty extension, including France, Italy, Spain, Portugal, Poland, Bulgaria, Romania, Hungary, Greece and Slovenia. There were 13 nations voting against the plan, yet the decision was taken because of abstention votes by four nations– Germany, Austria, Malta and Latvia, which would be considered as supportive of the plan.

The European Commission - the legislative arm of the EU - is currently imposing an anti-dumping tariff rate of 16.5 percent on Chinese and 10 percent on Vietnamese leather shoes. 

The imposed tax on Vietnam’s exported shoes over the past three years caused serious impacts on Vietnamese footwear makers employing more than 650,000 workers. 

Earlier, the EU anti-dumping advisory committee that is composed of senior trade officials from 27 member states, voted on Nov. 19 to extend the tariffs. 

Punitive taxes on imported shoes created a strong division within EU members since its introduction to limit the market share of cheap Chinese and Vietnamese shoes.

Many EU member states described these duties as “protective” of European shoemakers’ community from foreign competition. Famous retailers such as Clarks, Adidas and Puma also voiced against the EC’s protective measures.

Anti-dumping decision not in line with Vietnam-EU ties

A senior Vietnamese trade official has decried the EU’s extension of anti-dumping duties on leather-capped shoes from Vietnam, saying it is unsuitable with the growing economic and trade ties between Vietnam and the EU.

Deputy Trade Minister Le Danh Vinh made the comment in a telephone interview immediately after the European Union ministers made the final decision on December 22 by voting to extend anti-dumping duties on shoes from Vietnam and China for 15 months.

The decision was made at a time when Vietnam is doing its utmost to create a favourable business environment for foreign investors, including those from Europe, Mr Vinh said.

He stressed that the EU’s decision will cause dual negative impacts on Vietnamese footwear industry because the EU has recently removed Vietnam’s footwear exports from the list of beneficiaries of the Generalized System of Preferences (GSP). 

Mr Vinh said EC analysis also showed that European shoemakers, who are plaintiffs in the anti-dumping case against Vietnam, do not suffer any damage from imported products at the moment. The market shares of European producers remained stable during the survey period (since October 2008) compared to 2006.

The deputy minister reckoned that the anti-dumping duty extension would significantly affect European consumers, who will be restricted from choosing products at more reasonable prices. The groundless decision will also affect the legitimate interests of European businesses who are investing in Vietnam, he added./.