Footwear industry highly competitive, claims MOFCOM
10 Oct '06
2 min read
On Oct 5, EU made final determination of anti-dumping policy on Chinese shoes. Except one enterprise gained 9.7 percent anti-dumping duty because of market economic treatment, other enterprises were all collected 16.5 percent tax. The anti-dumping tax will be collected from Oct 7 with the term of 2 years.
While receiving interview, head from Bureau of Fair Trade for Imports and Exports of MOFCOM pointed out that there were many disputes which against free and fair trade proposed by WTO during registration, investigation and determination by European Committee.
First of all, there's no dumping in Chinese products. Chinese shoes industry was a highly competitive industry that there were over 1,000 enterprises export to EU and most of them were private-owned or foreign funded enterprises.
It took for granted that no enterprise sell products beyond cost. Meanwhile there's no government subsidy for these enterprises. Since China entering WTO, all export subsidies were abolished according to WTO regulations. EU's ruling of whether dumping exited in Chinese enterprise was based on market economic treatment for Chinese enterprises, which was, as a result, not accord with Chinese practice.
Secondly, EU shoes industry no longer possessed comparative predominance due to high labor cost and shortage of technical investment. For years, EU shoes industry transferred out of EU and reduced employment.
It was a normal practice as an international industrial transfer. The phenomena always existed in ten years while EU implementing quota system on Chinese shoes. It could not blame to export of Chinese product.
marketing@alchempro.com
