CHINA / National
Penalties on shoes a lose-lose decision
By Jiang Wei and Dai Yan (China Daily)
Updated: 2006-04-07 05:49
Chinese exporters lose out.
European manufacturers in China lose out.
European exporters lose out.
And European consumers lose out.
The provisional tariffs slapped on Chinese leather shoes by the European
Union (EU) is a lose-lose situation which must be turned around, a top
Commerce Ministry official said Thursday.
A woman walks past a poster advertising shoes in Guangzhou, southern
China February 21, 2006. [Reuters]
The EU was not justified in imposing the anti-dumping penalties because
there was no credible evidence for denying market economy status to
Chinese shoemakers, Vice-Minister of Commerce Gao Hucheng told China
Daily.
He was referring to the EU decision to levy provisional tariffs on
imports of Chinese leather shoes. The measures come into force today and
gradually rise from 4.8 per cent to 19.4 per cent by October, when a
final decision is expected.
"The EU declined to grant market economy status to 13 firms it
investigated on the spot. But all of them are privately-owned or
foreign-invested, and comply with the criteria for market economy
treatment," said Gao, also the ministry's international trade negotiation
representative.
"It also denied market economy treatment to non-sampled companies, about
150 or 90 per cent of the total respondents, without giving any
explanation," he added.
The EU began to give market economy status to some Chinese firms in
anti-dumping cases in 1998. As China has not yet been recognized as a
full market economy by the EU, the status helps individual companies gain
access to the European market.
The EU violated not only World Trade Organization anti-dumping rules but
also its own laws and anti-dumping procedures, Gao said, because none of
the 160 respondents had received disclosure from the EU on their claim
for individual treatment.
The EU's determination on dumping and injury in the case lacks enough
evidence, he said.
Shoemaking is a labour-intensive industry in which China enjoys
comparative advantages in terms of labour and resources; and the EU
should not arbitrarily regard the price advantage of Chinese leather
shoes as amounting to dumping, he said.
"Most Chinese shoemakers are small- and medium-sized companies that are
not able to dump goods in the EU market," he added.
He noted that the European petitioner listed only 6 of 15 injury
evaluation indicators required by the WTO Anti-dumping Agreement.
"So the EU lacks adequate evidence to file the case," Gao said. Since no
harm has been done to the EU industry, there is no reason for the case,
he said.
The penalties were also against EU companies' interests, Gao pointed out.
According to Chinese statistics, footwear producers from the original 15
EU member states have set up 478 plants in China with an actual direct
investment of US$737 million; and they also export to the European market.
"Anti-dumping measures against Chinese footwear exporters will surely
impair the profits of EU footwear producers and investors in China," Gao
said.
Chinese footwear exports are basically low- and middle-end products,
while the EU produces mostly high-end goods, he said.
"Meeting different needs of consumers, the two kinds of products are not
in direct competition; and have obvious differences in sales channels and
market segmentation. The anti-dumping measures are not only unnecessary
but also harmful to the interests of EU middle- and low-end consumers,"
he explained.
Gao said footwear exports from China generate lucrative returns for EU
importers and retailers and provide a large number of jobs in the
economic bloc.
The development of the Chinese footwear industry also ensures EU exports
of shoe-making machinery, leather and other raw materials every year.
According to Chinese customs statistics, in the first 11 months of 2005,
leather imports from the EU reached US$570 million, a year-on-year
increase of 27 per cent. China imported US$54.04 million worth of
shoe-making machines from the EU in 2004, up 26 per cent year-on-year.
Gao urged the EU to treat Chinese firms fairly and re-evaluate the whole
case to ensure the development of shoe trade.
Last July, the EU initiated anti-dumping investigations into leather
shoes worth US$730 million from China the largest single anti-dumping
case between the two economies.
According to statistics from the Ministry of Commerce, the EU is not only
China's largest trade partner but also a major source of dumping charges
against China.
(China Daily 04/07/2006 page1)
Related Stories
===========================================================================
China slams EU anti-dumping charges on shoes
===========================================================================
Manufacturers oppose EU anti-dumping duties
===========================================================================
China hopes for solution to EU shoes spat
===========================================================================
Most Commented/Read Stories in 48 Hours
Today's Top News
China goes on a shopping spree in the United States
Penalties on shoes a lose-lose decision
Wary Iraqis steer clear of US troops
China, NZ to step up pace of FTA talks
Negotiator in bid to resume 6-party talks
Top China News
Chinese premier begins official visit to Cambodia
Leading economists urge faster reform
Chinese currency to appreciate 3% in 2006
Japan urged to respond in kind to mend ties
Nine-day forest fire in SW China extinguished
20071123 Extracted from http://www.hellomandarin.net
No comments:
Post a Comment