Mandelson's Problems Chinese Shoes Face A Turning Point?

In September 17th, the latest EU internal polls showed that more than half of the Member States opposed the renewal of emergency import tariffs on Chinese and Vietnamese shoes.

The Financial Times reported that this adds complexity to a decision to be made by EU Trade Commissioner Mandelson.

Under the EU common trade policy framework, as a necessary consultation process in the anti-dumping investigation process, the European Union needs to seek the advice of the Advisory Committee before it is ready to initiate an investigation after accepting the proposal of the Italy footwear industry's anti-dumping review.

The representative of the EU advisory committee came from 27 member states. This time, the members representing the "anti-dumping duty" which opposed the continuation of the Levy in 2006 were 15 votes to 12.

The official of the Ministry of Commerce told our reporter, "we have taken note of this situation."

Although the voting result is only an advisory opinion, it does not have the binding force of law and execution, but it reflects a positive mood and guidance.

Insiders also speculate that this suggests that the EU's attitude may have been turned against import tariffs that make consumer goods more expensive, especially during the global high inflation period.

The divergence of internal opinions has put Mandelson under greater pressure. He must decide whether to extend the 16.5% and 10% import tariffs on leather shoes in China and Vietnam by October 4th.

It is reported that the British business department, which opposed the renewal of tariffs, has recently expressed its strong support from other member states.

Opponents will continue to urge the European Commission to cancel the tax measures.

According to relevant media reports, the Vietnam leather and Footwear Association also said that the European economy is currently on the edge of recession and is suffering from high inflation. Any continuation of anti-dumping measures will have a more negative impact on low-income people, who are the main consumers of Asian shoes.

At present, Vietnam has increased the price of shoes exported to the EU from 9.2 euros per euro to 10.14 euros, and the retail price of shoes has risen 10% to 18%.

At the same time, European importers and retailers also joined in calling for the abolition of tariffs.

"The continuation of these tariffs will be a mockery of the EU's anti-dumping policy and will restart the debate that has led to differences," said Khost VA.

The added value of footwear production up to 80% is created in Europe, and the advantages of European industry should be reflected in design and sales.

The Ministry of Commerce officials said: "shoes products have gone through the quota era, plus the protection of the past two years, it should be enough time to adjust.

EU industry can not rely on protection all the time, and protection can only be protection of backwardness.

In fact, the difference between the 17 day's voting results and the EU's internal member states is the continuation of the 2006 divergence.

"We need to remember the situation at that time in 2006: it was the result of intense differences and political compromise among member states that the anti-dumping duty on Chinese and Vietnamese footwear was changed from 5 years to 2 years."

This official believes that the EU should continue to reflect on its trade policy. In the era of globalization, we should face up to the globalization of division of labor, cooperation, competition and outsourcing, and attach importance to global supply chain management.

He stressed: "in the period of global inflation, all countries need to be cautious in dealing with anti-dumping."

As far as Chinese enterprises are concerned, the official recommends that they should communicate with different stakeholders of the European Union on the one hand, grasp the situation of the European continent in a timely manner, achieve their business goals through strategic cooperation, take the initiative to communicate well, eliminate misunderstanding, and firmly oppose trade protectionism.

On the other hand, we must abandon the low-cost strategy, seek differentiated operation, subdivide the target market, strengthen management and enhance the overall competitiveness.

At the same time, "in the new period of cost pushing up prices, enterprises should take into account both internal and external markets, make full use of legal means to protect themselves, improve themselves by means of technology, promote themselves by diplomatic means, and use cultural means to resolve conflicts.