Guangdong Shoe Enterprises Prepare For EU To Extend Anti-Dumping

The EU has imposed a 16.5% anti-dumping duty on leather shoes originating in China, which will expire in October 7th. At present, the footwear industry in Italy has submitted a final review application to the European Commission, asking for an extension of anti-dumping duties on Chinese shoes.

The Guangdong shoe company, which is most affected by the lawsuit, is preparing to respond.

Cheng Yongru, director of the two export department of the Ministry of Commerce and fair trade, said in an interview with the first Financial Daily yesterday that the importance of the EU is self-evident as China's largest export market.

The EU has implemented anti-dumping duties in the past two years. China's footwear industry has undergone pformation, upgrading and adjustment of the reshuffle process. Under the background of global inflation, financial turmoil and setbacks in the Doha Round negotiations, the current situation is different from that two years ago. China and Europe should have a clear understanding of this.

In the face of the coming review, shoe enterprises should actively respond to their actions, and on the other hand, they should improve their competitiveness and enhance their competitiveness.

Guo Weiwen, Secretary General of the EU's anti dumping alliance with Chinese shoes products and Guangdong Wanbang shoe company spokesman, said in an interview with the newspaper that they were discussing with lawyers how to deal with it, and denied that the enthusiasm of Guangdong shoe enterprises to respond to complaints was weaker than two years ago.

In the first half of this year, due to the continuous appreciation of RMB, rising labor costs and global economic recession, Guangdong exported 1 billion 630 million pairs of footwear products, down 15.8% from the same period last year.

Guangdong footwear export enterprises also significantly reduced, the export performance of enterprises from the same period last year 5811 to 3924 in the first half of this year, of which the Pearl River Delta footwear export enterprises more obvious decline, from the same period last year 5043 to 2617 in the first half of this year, a decrease of 2426, a drop of 48.1%.

Guo Weiwen said that the main problem of responding now is that the review procedure is different from that of two years ago, and the enterprise is not sure how to do it.

In an interview with our reporter, Yu Shengxing, the Chinese attorney at the EU anti-dumping case against Chinese footwear products, said that the trend of EU trade protectionism is becoming more and more obvious, and the possibility of ending anti-dumping duties on Chinese shoes is unlikely. It is possible to extend the two years, three years or five years.

Under a lot of uncertainties, it is even more necessary for Chinese shoe companies to argue that they are very close to the expiration date of anti-dumping. Therefore, it is necessary for enterprises to prepare relevant information in advance.

As a result of the active response from Chinese shoe companies, the time limit for the anti-dumping duty to be issued by the European Commission in October 2006 is two years. The anti-dumping period is usually five years.

Chen Lipeng, director of the import and Export Fair Trade Bureau of Guangdong provincial foreign trade and Economic Cooperation Bureau, said in an interview with our reporter that there will be a specific response plan.

The relevant government departments and enterprises are very concerned about the anti-dumping lawsuit, and are now paying attention to the latest information from the European Commission.

In July 2005, the European Union launched anti-dumping investigations involving more than $700 million in China's leather shoes products. Guangdong is the hardest hit area in the anti-dumping lawsuit, and the shoe companies in the region account for about half of the total amount involved.

With the help of Guangdong foreign trade and Economic Cooperation Department and other departments, Guangdong footwear enterprises in 2006 set up the EU's anti dumping alliance against China shoe products.

In October 7, 2006, the European Commission ended up dumping 16.5% of China's leather shoes and began to levy anti-dumping duties for a period of two years.