The press release of the European Commission of October the 5th was short, but the impacts and the story behind the release was more than eminent for Europe, China and Vietnam. On October the 5th the Council adopted a definitive anti dumping duty on imports into the EU of special leather footwear from China and Vietnam starting October the 7th. This measure will be installed for two years. The regulation is aimed at protecting the EU footwear market by imposing duties of 16,5% and 10% on leather footwear imports from China and Vietnam, respectively1. Before the installing of the measures the Commission initiated investigations in July 2005. In April provisional anti dumping duties had been adopted.
The following paper will tackle the topic of the anti-dumping measures adopted by the European Commission. First, I will go over the definition of dumping. After this, I will explain the role of the WTO in cases of dumping. In the next chapter I will talk about dumping cases in the EU from China in general. The next part deals with the case of anti dumping, concerning special leather shoes from China and Vietnam. Different voices from Europe and China will be covered, including the discussion of the impacts of the adopted measures.
Table of Contents
1. Introduction
2. Definition
3. WTO and Dumping
4. EU and Dumping
4.1 EU and Dumping in general
4.2 EU and the Chinese shoe dumping case
4.2.1 Voices from Europe
4.2.2 Voices from China
4.3 Discussion of impacts
4.3.1 Price increase
4.3.2 Unemployment
4.3.3 Reduced choice
4.3.4 Further arguments
Objectives and Topics
This paper examines the anti-dumping measures imposed by the European Commission on leather footwear imports from China and Vietnam, analyzing the conflicting perspectives of European industry representatives, importers, and Chinese officials regarding the economic impacts and legitimacy of these trade policies.
- Theoretical foundations of dumping and international trade law.
- The role of the World Trade Organization (WTO) in regulating trade defenses.
- European Union trade policy and the specific "Chinese shoe dumping case".
- Conflicting arguments regarding price stability, employment, and consumer choice.
- Critical evaluation of the investigation methodology and protectionist outcomes.
Excerpt from the Book
4.2.1 Voices from Europe
The Confédération Européenne de l’Industrie de la Chaussure (CEC) is a confederation of the European footwear industry. CEC is known as the official representative body of the European Footwear Industry. CEC represents national footwear federations of the European Union and also observing countries of Central and Eastern Europe. Currently 16 footwear federations gathering 14.000 footwear manufacturers of the E.U. and 4 observer federations are represented by the European Confederation of the Footwear Industry.
Another leading Association is the Association of Importers and Retail chains (FAIR). This association represents more than 100 shoe importers and retailers. Companies represented by FAIR are e.g. Columbia (France, USA), Clarks (Great Britain), Deichmann (Germany), Wortmann (Germany), with approximately 90.000 employees. The companies are importing 50% of the total volume of the EU.
The European Confederation of the Footwear Industry (CEC) has filed a complaint against the import of certain footwear from China and Vietnam. The CEC is convinced that these products are dumped. This means, that those products are imported at prices which are below the prices paid or payable on the domestic market. The Commission has accepted CEC’s request and has started an anti-dumping procedure. In February 23th, 2006, provisional measures on imports of footwear from China and Vietnam has been installed.
Chapter Summary
1. Introduction: Outlines the imposition of anti-dumping duties on leather footwear from China and Vietnam and sets the scope for the subsequent analysis.
2. Definition: Defines dumping as predatory pricing and price discrimination, explaining how manufacturers use these tactics to gain market share.
3. WTO and Dumping: Explains the structure of the WTO and how its trade defense instruments, including anti-dumping and anti-subsidy agreements, function.
4. EU and Dumping: Analyzes the EU's common commercial policy and provides a detailed breakdown of the shoe dumping case, including industry and government perspectives, as well as the economic impact debate.
Keywords
Dumping, Anti-dumping duties, European Union, China, Vietnam, Footwear industry, World Trade Organization, WTO, Protectionism, Price discrimination, International trade, Trade policy, Globalisation, Market share, Subsidies.
Frequently Asked Questions
What is this research paper primarily about?
The paper focuses on the anti-dumping investigation conducted by the European Commission regarding leather footwear imports from China and Vietnam, analyzing the resulting trade measures.
What are the central themes of the work?
The central themes include international trade law, the impact of WTO regulations on national trade policies, and the clash between European manufacturers and importers concerning protectionist versus free-trade interests.
What is the primary objective of the study?
The primary objective is to evaluate the legitimacy and economic impact of the EU's anti-dumping duties on Chinese and Vietnamese footwear from multiple stakeholders' viewpoints.
Which scientific method is applied?
The work utilizes a qualitative approach, analyzing official reports, press releases, and industry arguments to compare perspectives from European industrial bodies, importers, and Chinese government officials.
What is covered in the main body?
The main body covers the definitions of dumping, the regulatory role of the WTO, the legal procedures of the EU, and detailed arguments regarding the impacts on prices, unemployment, and market choice.
Which keywords characterize this document?
Key terms include dumping, protectionism, trade defense, footwear industry, and EU trade policy.
How does the CEC justify the need for anti-dumping duties?
The CEC argues that low-cost imports are a result of illegal subsidies and unfair competition, which have caused massive job losses and factory closures within the European industry.
Why does the Chinese Ministry of Commerce criticize the EU's investigation?
The Chinese side views the tariff as a protectionist measure that violates WTO principles and unfairly ignores the competitiveness of Chinese firms, while also pointing to flawed investigation methods that use inappropriate comparative countries like Brazil.
- Quote paper
- Sven Stumpf (Author), 2006, Antidumping - The discussion concerning the Anti-dumping case of imported shoes from China and Vietnam , Munich, GRIN Verlag, https://www.grin.com/document/70320
