Commission proposes 15-month extension of anti-dumping measures on leather shoes

The Commission has proposed to the Council a 15-month extension of anti-dumping measures regarding certain leather footwear from China and Vietnam. The original duties, which are 16.5% on Chinese shoes and 10% on Vietnamese shoes, were imposed in 2006. Following an industry request, the Commission investigated to see whether the measures should continue after their normal expiry date. The investigation found an extension of the measures to be justified.

The investigation found that, in spite of duties imposed, Chinese and Vietnamese-made leather shoes continue to be dumped in the European market. Although measures have partially stemmed the effects of dumping, this uncompetitive behaviour has continued to cause significant harm to EU manufacturers, which are undertaking significant efforts to adjust their business models.

In this context, the removal of measures at this stage would lead to increased dumping and injury—and potentially halt the adjustment process of an industry which employs over 260,000 workers in the EU. In addition, the investigation did not uncover any significant adverse effects on consumers or distributors.

Consumer prices have remained virtually stable and distributors have more moderate profits, but these remain healthy, exceeding 20%. The stability of prices reflects the relatively low level of duties (ranging between 9.7% and 16.5% of import prices), which on average amount to less than €1.5 per pair for shoes that retail at €50—while they are imported on average at approximately €9 per pair. On the basis of these facts, EU anti-dumping rules call for an extension of measures.

However, in its recommendation the Commission proposed a 15-months extension—rather than 5 years, the maximum allowed by the rules— as the investigation has shown that the industry's adjustment process is well on track. A 15-month period therefore appears reasonable to allow the industry to adjust, while minimising any effects on other stakeholders.The decision rests now with Member States.