The European Union and China plunged into a second trade spat today as Brussels opened an investigation into the possible dumping of Chinese and Indian footwear on the 25-member bloc's market.
“If as a result of the investigation started today, it is demonstrated that predatory prices are practised then action will be considered,” said European Commission trade spokeswoman Claude Veron-Reville.
The investigation concerns the sale of Indian and Chinese “safety”, or reinforced, shoes on the European market at below the cost of production, known as predatory pricing, or dumping.
European manufacturers requested the investigation, which may last up to 15 months, although the EU hopes to finish it within nine months.
Brussels and Bejing only recently resolved a dispute over surging imports of Chinese textiles to the wealthy bloc, agreeing to a maximum 12.5 per cent a year rise in imports until the end of 2007.
If the EU finds against the two Asian states, it could levy extra duties on their exports to the bloc.