Special report: EU, China to handle trade disputes via talks

    BEIJING, Sep. 1 -- A European Union (EU) dumping charge against Chinese protective footwear makers has been dropped as leather shoemakers await the final ruling in their case.

    The EU dumping charge against protective footwear imported from China was terminated after the European Confederation of the Footwear Industry formally withdrew its complaint, the European Commission said.

    Chinese businesses had testified to the European Union that China's exports had not injured the bloc's shoemaking industry, said Li Fayin, a lawyer with Beijing-based Allbright Law Office, who represented the Chinese firms in the case.

    "This is the first time Chinese enterprises have won an anti-dumping case in the EU market by non-injury appeal since Chinese lighter makers were successful in 2003," he said.

    The success is the result of collaboration between the industry, organizations, lawyers and governments.

    The Chinese businesses were proactive; nearly all large-sized protective footwear makers responded to the charge.

    They presented sufficient facts to the European Commission to support the case that China's exports had not hurt their European counterparts, Li said.

    "The European Commission did not give a preliminary ruling on protective footwear as in other dumping charges and its reasons were based on the Chinese enterprises' appeal."

    Major protective footwear makers also persuaded their EU material suppliers to lobby the European Commission.

    Li said the case set an example for other Chinese enterprises involved in anti-dumping cases.

    The European Commission adopted a proposal by Trade Commissioner Peter Mandelson on Wednesday for a 16.5 per cent duty on leather shoes from China and 10 per cent on those from India.

    The European Commission said on its website it found "both dumping and injury to EU producers" in its investigation.

    The proposal has been passed to EU members for a final vote within a month. If it is passed, it will be effective for five years.

    EU Trade Spokesman Peter Power said: "The commission has fulfilled its obligations and its responsibilities and has brought forward a sound proposal. It is now for member states to debate their position among themselves."

    The plan was rejected by a narrow margin in July at the advisory level.

    An earlier "quota plus tariff" proposal by Mandelson was also rejected by EU members in July.

    The European Union launched dumping charges against Chinese leather shoes last July amid concern that increasing footwear imports from China would flood its markets and hurt local shoemakers.

    It is the largest market for China in both value and volume, with an export of US$670 million and providing 4 million jobs.

    The European Union now implements a "phase-in" tariff system on China's leather shoes as a result of its preliminary ruling on the case.

    (Source: China Daily)