Wenzhou Shoe Exports Were Hit By Anti-Dumping Again

The coming is still here.

Zhou Xiaoping, director of the Fair Trade Office of the Wenzhou Municipal Bureau of foreign trade and economic cooperation, has been worried about something.

In April 29th, EU Member States decided that anti-dumping measures against Chinese leather shoes would be extended to Macao to punish Chinese shoe companies by evading Macao's anti-dumping duties on the EU.

Yesterday, the China Leather Association confirmed the news.

The EU has imposed a 16.5% anti-dumping duty on leather shoes from mainland China and Vietnam for a two-year period since October 7, 2006, but this measure did not include the Macao Special Administrative Region.

However, this time, the EU side proposed that since the anti-dumping duty was levied, the footwear products exported from Macao to the EU have increased to 4 times.

The European Commission believes that because Macao's footwear production facilities are limited, it can not have such a huge increase unless it is re exported from other regions to Macao.

To this end, the European Commission launched its own investigation on circumvention of anti-dumping measures.

As a matter of fact, Wenzhou, as the largest producer of leather shoes in Zhejiang, is aware of this.

Zhou Xiaoping said that last year, the Wenzhou Municipal Foreign Trade and Economic Cooperation Bureau issued special early-warning information to remind Wenzhou shoe enterprises to make relevant preparations.

"But several large shoe companies have said that there are not many products exported through Macao."

But from official figures, this is not the case.

Data from Wenzhou Municipal Foreign Trade and Economic Cooperation Bureau show that since the EU imposed anti-dumping duties, Wenzhou's number of leather shoes in Macao has increased significantly, and its trade volume has surged from 10 thousand and 500 US dollars in 2005 to US $3 million 327 thousand in 2006, an increase of 300 times over the same period last year.

From January 2007 to July, the trade volume of leather shoes for Wenzhou reached 3 million 183 thousand and 600 US dollars, up 162.52% over the same period last year.

Xie Rongfang, executive vice chairman and Secretary General of Wenzhou shoe leather industry association, expressed concern about this.

"This new regulation of the European Union is unfair. We have organized relevant enterprises to conduct anti circumvention training."

The industry believes that the new regulation is no less than the snowstorm in Wenzhou in the winter.

"The increase in labor costs has been a great blow to enterprises."

An analysis report on the economic operation of shoe leather industry in the first quarter of 2008, from the shoe leather industry association of Wenzhou, shows that there are more than 70 enterprises in Wenzhou shoe making enterprises that have failed in recent months.

According to the association insiders, Wenzhou shoe enterprises have dropped from 5000 in 2003 to 2600 this year.

"On the one hand, we hope that the government can come forward to deal with this unfair policy of the European Union. On the other hand, we are also actively guiding enterprises to pform their products."

Xie Rongfang told reporters.

With regard to the adjustment of product mix, enterprises in Wenzhou are also actively working in this direction.

According to the latest data from Wenzhou entry exit inspection and Quarantine Bureau, the average price of leather shoes exported to the EU in Wenzhou increased from 7.97 US dollars to 9.03 US dollars last year, an increase of 13.3%.

Wenzhou entry-exit inspection and Quarantine Bureau responsible person said that after the EU imposed anti-dumping duties, Wenzhou leather shoes exports to the EU's orders have been greatly affected.

However, the phenomenon of raising the average export price of leather shoes shows that the added value and technical content of leather shoes exported by Wenzhou shoe enterprises have been significantly improved, and they are gradually getting rid of the growth mode of "win by quantity" and "low price competition".

It is reported that last year, Wenzhou exported to the EU 5832 pairs of leather shoes, 26 million 254 thousand pairs, the amount of 237 million U.S. dollars, batches, the number dropped 3.64% and 10.34% compared to the same period last year, but the amount increased by 1.6% over the same period last year.