EU leaders reject 'anti-dumping' shoe tax

European Union governments have rejected a proposal for anti-dumping duties on shoes from China and Vietnam, the executive European…

European Union governments have rejected a proposal for anti-dumping duties on shoes from China and Vietnam, the executive European Commission said today.

The commission's plan had sought a middle ground between shoe-producing nations in the EU led by Italy, which want protection, and pro-free trade countries in the bloc opposed to any measures at all.

The commission proposed anti-dumping duties of 10 and 16.5 per cent for leather footwear from Vietnam and China, respectively, after a previous plan was thrown out by EU states.

A commission spokesman said 14 of the EU's 25 member states have vetoed the Commission's proposal, adding the executive will decide in the coming days what to do next on the shoes duty in an effort to find a qualified majority for its proposal.

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"There are clearly no guarantees that this is achievable. Member states duly recognise the sensitivity of this issue, so getting a majority is not easy," he said.

Brussels is in a hurry because any anti-dumping tariffs must be in place by October when preliminary duties on Chinese and Vietnamese leather shoes are due to expire.

The preliminary measures were introduced in April after Brussels said it found evidence of state intervention in both Asian countries that unfairly helped shoe exporters.

China and Vietnam denied any dumping.

Meanwhile, Retail Ireland, the IBEC group that represents Irish retailers, has praised the Government for its opposition to the proposed tax.

"This flawed plan was always about protecting the interests of a few uncompetitive European producers at the expense of consumers and retailers. The Commission should take the hint and bury it," said Torlach Denihan, director of Retail Ireland.