EU Anti-Dumping Cases

The Issue:

Cases against Chinese and Vietnamese Footwear:

In a controversial decision that has already triggered at least one legal challenge, the European Union (EU) on October 6, 2006 "approved" a European Commission proposal to impose final dumping duties (on top of normal duties) of 16.5 percent and 10 percent, respectively, on European imports of certain leather footwear from China and Vietnam for a two-year period beginning October 5, 2006. The member states approved the Commission's proposal by a vote of 9 member states in favor, 12 member states against and 4 member states abstaining. Under EU rules, an abstention counts as a vote in favor, meaning the proposal was approved by a vote of 13-12. This action came after several previous proposals were defeated.

The EU launched an investigation September 5, 2007 into allegations of possible circumvention through Macau of the anti-dumping measures. The possible investigation is spurred by the steep increase in the volume of footwear imports from Macau. If the EU finds that the subject imports from Macau are indeed of Chinese and/or Vietnamese origin and are being circumvented through Macau to avoid anti-dumping duties, EU leather footwear imports from Macau would then be subject to the dumping duties. The investigation should be completed by June 5, 2008.

AAFA on the Issue:

AAFA strongly opposes the EU anti-dumping action. In addition to keeping its members informed of the ongoing situation, AAFA is actively working with the U.S. government and AAFA’s European counterparts to fight the anti-dumping cases and prevent other countries from replicating this action.

The Latest News:

01.07.08

As previously agreed, the European Union (EU) eliminated all quotas on EU imports of Chinese apparel and textiles on January 1, 2008. In its place, the EU and China agreed to implement an import "surveillance system" to monitor EU imports of Chinese apparel and textiles and report on possible import surges through the end of 2008.

10.15.07
The European Union (EU) announced October 9 that it has agreed with China's Ministry of Foreign Trade on a joint system to monitor EU imports of Chinese textiles and apparel once the bloc's quotas on such shipments expire December 31. The monitoring system, which will remain in place during 2008, will track the issuing of export licenses in China and the importation of covered goods into the EU. The system is designed to further manage the transition to unrestricted trade in textile and apparel goods by providing a clear picture of the likely development of trade patterns and ensuring predictability for EU businesses. The EU emphasized that while the subject imports will be closely monitored, their level of import will not be restricted by this arrangement.