EU charges on footwear imports

China has declared the EU's charges on import of leather shoes from that country illegal. It reacted to agreement the EU made on Wednesday to limit the import of cheap shoes from China and Vietnam . During the next two years the EU will charge a fee of 16.5 percent on leather shoes from China and 10 percent on Vietnamese imports. The agreement does not include athletic footwear. The decision was met with resistance from twelve European member states. Thirteen member states were in agreement or had not voted. Nevertheless, the proposal has not been rejected; this would only have been possible if the majority had been against. The terms of the proposal have however been softened. Instead of the initial five years, EU commissioner Mandelson introduced a term of two years.

The import of leather shoes from China increased 1000 percent between 2001 and 2005. Southern European footwear producers are particularly against the import, claiming they are costing them a fortune. One of their main contentions is that footwear producers in China and Vietnam are subsidized by the state.

The Chinese minister of trade, Chong Quan, said that he would keep a close eye on the results of the fees. He does not believe there are grounds for the action, which he says will harm the rights of the Chinese footwear industry.