The price of children's shoes is set to rise under an EU plan to levy anti-dumping duties on leather footwear imported from Vietnam and China.
The European Commission yesterday proposed setting import duties of 10 per cent and 16.5 for shoes from China and Vietnam respectively. The plan, if agreed by a majority of EU states, would replace preliminary anti-dumping duties that were already introduced by the commission earlier this year.
The preliminary duties were imposed following a commission investigation, which concluded that Vietnam and China provide illegal state aid to footwear exporters. However, the commission initially decided not to impose duties on children's shoes to protect the incomes of families with small children.
A commission spokesman said this preliminary position had to be reversed due to considerable evidence of fraud perpetrated by firm's importing women's shoes as children's shoes. But he said the duties would be proportionately smaller on children's shoes because they were cheaper.
The average import price for leather shoes is €8.50, which means that the proposed import duty for China would add €1.40 to the import cost. This means that a price rise by retailers should be limited as the average retail price of shoes covered by the duties is about €35, says the commission.
The decision to impose anti-dumping duties has proven extremely controversial among EU member states. Some shoe manufacturers in southern Europe have pushed for higher duties than the levels currently proposed, while northern European states such as Sweden and Britain oppose import duties.
Earlier this month, a majority of EU government experts on anti-dumping duties opposed the plan put forward by trade commission Peter Mandelson. Under the commission proposal, a majority of member states must agree to support the new scheme of import duties by October 6th. If member states fail to support the commission's proposal, the preliminary duties on Chinese and Vietnamese shoe imports - 19.4 and 16.8 per cent respectively - will lapse.
The Government said that the proposal was being studied and that a response would be submitted within the next month.
The proposed duties would only affect shoes containing leather uppers from China and Vietnam. Trainers would not be hit. Member states have a month to consider the Commission recommendation.
The Department of Enterprise and Employment was "surprised" at the extent of the new duties proposed by the commission. Informed sources said that the government would examine the commission's proposals in the weeks ahead.
