A European Union plan to extend a hefty tariff on Chinese and Vietnamese shoes by at least 15 months has sparked an outcry from the world's largest footwear manufacturer and major retailers.
The European trade bloc was likely to extend an anti-dumping tariff of up to 16.5 per cent on Chinese-made footwear from January 3 next year, Reuters reported yesterday. The move was hotly contested by the European Footwear Alliance, which represents retailers such as Nike, Adidas and Timberland.
Some industry associations in Hong Kong said that extending the tariff would put the nascent recovery of the manufacturing sector in jeopardy and cause far-reaching ripple effects in the supply chain.
The EU first imposed duties of up to 16.5 per cent on Chinese-made shoes and 10 per cent on those made in Vietnam in 2006 after EU manufacturers accused the two governments of unfairly subsidising their shoemakers so that EU producers could not compete.
The latest plan also came at a time when Vice-President Xi Jinping is on a European tour.
Yue Yuen Industrial (Holdings), the world's largest producer of athletic and casual footwear and a supplier to brands such as Nike, Adidas and Puma, said the extension would jack up costs.
'We stand behind our customers. Obviously, it is bad news for everybody in the business,' Yue Yuen investor relations director Jerry Shum said yesterday. 'For the sake of free-trade spirit, the anti-dumping duty should be removed.'
