Chinese Shoe Companies Are "Cold" To See EU Cancelling Anti-Dumping Duties Against Chinese Leather Shoes

With EU's leather shoes to China

In order to protect the interests of some southern European shoe enterprises, the EU has formally imposed anti-dumping duties on leather shoes imported from China since October 2006, with the highest tax rate of 16.5%.

In December 2009, the EU decided to reconsider the anti-dumping measures against Chinese leather shoes for another 15 months, expiring in March 2011.

With the increase of labor costs, rising prices of raw materials and frequent fluctuations in the RMB exchange rate and other unfavorable factors, the EU's cancellation of anti-dumping duties is undoubtedly good news for China's export shoe enterprises.

However, many exhibitors said on the 2 day that they should not be blindly optimistic. The EU's latest monitoring measures should pay more attention.

Pang Xinwu, manager of the Commerce Department of Zhejiang Gu Gu Er footwear industry, which accounts for 70% of the company's export volume, said that the most direct benefit of the EU's anti-dumping duties on Chinese leather shoes is the cost pressure reduction. However, the price advantage of China's leather shoes is gradually weakening, and its quality is far from the opponent of foreign producers. The EU's positive effects will not be too great.

He believes that Chinese shoe enterprises must improve product quality, establish brand awareness and take the high-end line, so as to gain a firm foothold in the international market.

Mr. Qian, chairman of Wenzhou Di Na fan Dai fu shoe industry limited, said he hopes to take this opportunity to expand the market share in the European Union.

Due to the existence of various uncertainties in the international market, all parties, including EU businessmen, have a wait-and-see mentality.

Up to now, the EU's export orders for leather shoes have not changed significantly.

On the other hand, EU's trade protectionism measures such as "technical barriers" to China's footwear industry will also exist, and the situation should not be too optimistic.

Mr. Qian said that in order to enhance the competitiveness of the product market, its company and a leading shoe manufacturer in Italy are building factories in the mainland of China. It is expected to be put into operation in June and will further develop new markets such as Africa and South America in the future.

A company unwilling to disclose the name said that while canceling anti-dumping duties on leather shoes, the EU has also introduced a number of monitoring measures, including weekly monitoring to ensure that there is no unfair behavior, and that Chinese shoe companies enjoy all kinds of government subsidies.

The head of the company believes that how to strengthen coordination within the industry and avoid repeating the same mistakes is a problem that Chinese export shoe enterprises must face together.

Reporters noted that, after the EU anti-dumping duties were targeted at leather shoes, the shoes made of artificial leather were not in the scope of anti-dumping, and some exhibitors who made artificial leather shoes began to worry about the EU's competition pressure from domestic counterparts caused by anti-dumping.

Rolle, manager of International Trade Department of Guangzhou Nelly Trading Co., Ltd., Wang Xiaotao, said European buyers' orders for artificial leather shoes will be reduced, but the impact may not be too great.