EC adopts provisional anti-dumping duties on Sino -Viet shoes
25 Mar '06
4 min read
A monitoring mechanism will be created to ensure that importers do not use these excluded categories to circumvent the duties.
Four things you need to know about the Commission's provisional anti-dumping measures on leather shoes from China and Vietnam:
They confront unfair trade practice, not China and Vietnam's natural comparative advantage.
Although the EU investigation was undertaken in factories jointly agreed with the Vietnamese and Chinese governments, EU investigators found clear evidence of serious state intervention in the leather footwear sector in China and Vietnam - cheap finance, tax holidays, non-market land rents, improper asset valuation and export incentives.
There is dumping flowing from this state subsidisation. Legitimate low-cost comparative advantages common in developing countries are being topped up in this case with uncompetitive behaviour.
The Commission will not act to protect European producers against tough but fair competition. It has a legal duty to act to limit the effects of unfair trade.
Because of our lesser duty principle, Europe's anti-dumping rules clearly ensure that anti-dumping measures cannot be used to make imports more expensive than the equivalent EU product.
EU duties either close the margin of dumping, which is the difference between the export price of the dumped product and its true value or close the margin of injury, which is the difference between the export price of the dumped item and the sales price for the equivalent EU product, whichever is less.
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