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EU countries clash over shoes duty stalemate
Published in Saudi Press Agency on 27 - 09 - 2006


European Union countries
clashed on Wednesday over a plan to impose anti-dumping duties
on Asian leather shoe imports, postponing for another week a
decision concering the row that has split the bloc, according to Reuters.
A narrow majority of the 25 member states has so far opposed
the duties plan, led by Nordic states which traditionally favour
free trade and embrace economic globalisation.
They are pitted against an increasingly angry group led by
shoe-producing Italy, which says imports of underpriced shoes
and other goods unfairly threaten entire sectors of their
economies and tens of thousands of jobs.
With time running out for the dumping plan, tempers are
flaring, trade diplomats said.
Italy, incensed that other EU countries will not back its
campaign, proposed that existing European anti-dumping duties
that help protect British and Irish salmon farmers against
non-EU Norway should be suspended, Italian diplomats said.
Poland, Spain and Lithuania were backing Italy's countermove
which could be repeated on other dumping duties introduced at
the request of members of the rival EU camp, they said.
"I think we will now see an anti-dumping war," said a trade
specialist from a free-trading Nordic country.
The battle over shoe duties has raged since February, when
the European Commission said it had evidence of state
intervention in China and Vietnam.
Both Asian countries have denied dumping.
The proposed duties of 16.5 percent for leather shoes from
China and 10 percent for Vietnam must be agreed by next Friday,
when provisional duties expire.
An EU diplomat said France suggested on Wednesday that the
duties should last for two years -- down from the standard
five-year period -- and then be reviewed.
Cyprus, a crucial swing voter which has previously opposed
against duties, said the idea could be a starting point for a
compromise, the diplomat said.
A spokesman for the Finnish EU presidency said ambassadors
had decided to put off the issue until they meet again next
week. A final decision would be taken by ministers on Thursday,
a day before the deadline.
EU Trade Commissioner Peter Mandelson, a convinced
free-marketeer, has sought to tread a fine line between the two
camps, courting suspicion on both sides.
After the shoe row, trade experts say the next battle is
already looming over Chinese furniture imports.
Furniture makers in Italy, Germany and other EU countries
are collecting data to back up a possible request for an
anti-dumping investigation to be made in coming weeks.
Mandelson is due to publish a policy paper next week on how
Europe should face up to the challenges of globalisation,
including a review of its anti-dumping rules.
That has raised concerns in several EU capitals which fear
the review could make it harder for them to use the duties.


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