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Trade ministry flays EC for delay in lifting dumping tariffs
The Deputy Minister of Industry and Trade Nguyen Thanh Bien has strongly criticised the European Committee’s tariff review regarding leather shoes made in Vietnam as having an “adverse impact” on both Vietnamese shoemakers and their European importers and customers.
Bien referred to the EC’s October 2 decision to continue with the current anti-dumping tariffs of 10 percent levied on leather-capped shoes imported from Vietnam for another 12-15 months, pending the outcome of tax review. The rates were due to have been lifted on October 7 this year under a previous decision promulgated by the EC in October 2006.
In an interview with the Vietnam News Agency, Deputy Minister Bien said the new decision has disappointed both customers and enterprises in the EU and does not reflect the positions of a majority of the bloc members.
“ Vietnam is disappointed with the decision,” said the deputy minister, adding that it would have an adverse effect upon business and investment relations between Vietnamese enterprises and their European partners.
He called upon the EC to conduct fair and swift inspections in addition to not extending the anti-dumping tariffs after the inspection period.
“Only by so doing can the European Committee help enterprises from both sides to stabilise their production and business and give EU customers the chance to buy Vietnam-made leather-capped shoes at reasonable prices,” said the deputy minister.
Regarding the prospects for Vietnam-made footwear in the EU market, Bien warned of double pressure prompted by the EC’s recent tariff decision and its removal of the products from the list of those receiving preferential tariffs from January 1, 2009.
The global financial crisis is also having a negative impact upon the industry as current financial conditions have decreased purchasing power within the EU market, he added.
The Vietnamese footwear industry has suffered a sharp drop in revenue from exports to the EU market over the past two years. This new decision by the EC will have serious consequences for half of a million workers employed in the Southeast Asian country’s footwear industry.
Bien encouraged domestic footwear makers to work closely with EC inspectors while taking the initiative in diversifying its range of products and expanding markets in an effort to mitigate the negative effects on enterprises’ production levels and the incomes and job security of employees.
He went on to promise assistance to leather shoe makers during the inspection period.
To this end, the Department on Competition Management under the ministry held a workshop for representatives of relevant enterprises on October 3, explaining the current EU laws on anti-dumping and issuing important information regarding preparations for the review period.
The EC’s tariff decision on leather shoes imported from Vietnam and China has received opposition from 15 out of 27 EU member countries at a consultancy meeting held by the Anti-Dumping Committee on September 17.
A number of organisations in the EU have also issued press releases to protest the policy, stressing that it should not be applied in the current context of global financial turmoil.
They shared the view that the protectionism policy has benefited only a handful of enterprises with low competitive edges and runs counter to the trend towards trade liberalisation.
VNA
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