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EU ban to benefit Indonesian shoe industry

27 Jul '06
2 min read

European Union (EU) decision to restrict shoe imports from China and Vietnam has opened the window for countries like Indonesia to increase their share in EU markets.

Indonesian Footwear Association, Chairman, Eddy Widjanarko hoped that duty imposition would help Indonesia improve its market share by 20 percent to US $1.7 billion this year from 1.42 billion currently it has due to stiff competition from China and Vietnam.

China and Vietnam face the prospect of anti-dumping measures, resulting in five years import restrictions if they fail to defend their positions when EU reviews its mesures in October and November.

The restriction would be a telling blow for China and Vietnam as their export to EU stands at $5 and $2 billion, respectively.

Even the ban may not guarantee free access for Indonesia as both China and Vietnam may try to transship their products through third countries including Indonesia itself, which will invite ban of EU again as they will penalize the third country.

Widjanarko has appealed to the Government to prevent transshipment of Chinese and Vietnamese products from its shores and appeal for improvement in the shoe quality has also been made by Anshari Bukhari, Director General of textile and metal industries.

Indonesia exported 34.4 percent of its total footwear products to the United States and 33.2 percent to the EU in 2005.

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