CLIA statement on anti-dumping measures

'This approach lacks any basis in fact and law and violates the principles of fair trade. We believe that Chinese shoe makers were not dumping and have not caused substantial damage to European shoe makers.

'It is clearly discriminatory in refusing to accept all applications of Chinese shoe makers being inspected on-site for market economy status. Such action is a serious breach of the principle of free trade. The decision of applying unified tariff to all shoe makers involved in the anti-dumping case is also discriminatory and a concentrated demonstration of trade protectionism.

'The decision made by the EU will not save shoe makers in Europe and not sharpen EU shoe makers; competitive edge. Painful but inevitable industrial structuring would be the better option. We hope to strengthen the cooperation with European partners in the shoe sector but all of these actions should be carried out under the fundamental principles of equality and mutual benefit. Otherwise, China's enterprises as well as European consumers, distributors, importers and its manufacturing industry will suffer in general.

'The European Union should reconsider its decision and make a determination in conformity with WTO rules. Otherwise the Chinese enterprises will take the legal action to contest the EU decision.'

An article in a Guangzhou newspaper noted that as the European Union's anti-dumping tariffs against China-made leather shoes took effect, Chinese shoe manufacturers said that not only have orders decreased but distributors want prices dropped as some are now only ready to pay 21 yuan ($2.50) for a pair of leather shoes.

The article went to say that: 'If EU franchisers want to shift the cost of the tariff to Chinese shoe exporters, it will inevitably hurt Chinese shoe makers by going on to slash manufacturers' meagre profits', said Hong Guangsheng, manager of the Guangzhou Yunfang Shoe Trade Co Ltd. The company, based in south China's Guangdong Province, exported 500,000 pairs of shoes to Italy last year. However, their distributors in Italy cut April's new order by half and have demanded the company drop prices from 25 yuan (US$3) to 21 yuan (US$2.5) a pair.

Clarks, the UK footwear chain, have said they would be unable to absorb the increased costs and said the UK was particularly hard hit by the move given the deflationary retail environment. Shoe prices have fallen 5.7% in the year to February, while Martin Salisbury, finance manager at Clarks, thinks prices have come down 18% in real terms over three years. Clarks says the tariffs will result in an additional £15 million cost on the 60% of shoes the retailer imports from China and Vietnam.

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