| Recently, the EU members rejected the proposal of | | | | the 25 members of the European Union. But getting |
| the European Commission to impose a formal system | | | | such level of approval even proves to be hard. The |
| that would regulate any importer of leather shoes like | | | | Commission initially suggested the introduction of a |
| Vietnam and China. The scheme was designed in | | | | quota system, which would allow 95 million pairs of |
| order to replace emergency policies that were | | | | imported shoes from Vietnam and 140 million from |
| implemented last April. It must be noted that the | | | | China. |
| temporary regulating system was applied by the EU | | | | Any importer that would exceed the quota would |
| due to allegations that imported shoes were being | | | | have to pay up to 29.5% of duties. However, the |
| sold at lower prices in order to gain a bigger share in | | | | idea was opposed by the majority of the EU |
| the European markets. At that time, the Commission | | | | members. The opposition was headed by major shoe |
| stated that it was able to gather sufficient evidence | | | | manufacturers such as Italy, Poland, and Portugal. |
| that both China and Vietnam were subsidizing local | | | | Moreover, the proposed policy was questioned as |
| shoe businesses in order to gain an unfair advantage | | | | regard its legality under the global trade standards. |
| in the EU markets. According to EU Trade | | | | After the proposal was rejected, the Commission |
| Commissioner Peter Mandelson, the implementation | | | | came up with another scheme wherein 16.5% tariffs |
| of a formal regulating system was needed in order | | | | would be imposed on Chinese goods while 10% |
| to protect all European manufacturers from any | | | | would be applied on Vietnamese products. However, |
| importer of cheaper goods such as shoe products. | | | | that suggestion was also opposed by the EU |
| The proposal was supported by shoe producers in | | | | members. Both Germany and Britain saw the duties |
| member states like Italy, Poland, and Portugal. | | | | as too harsh for any importer. A spokesman of Mr. |
| According to them, European shoe manufacturers | | | | Mandelson stated that the Commission would look |
| had to deal with higher production costs unlike their | | | | for other alternative policies that would effectively |
| East Asian competitors and thus could not compete | | | | protect European shoe businesses without being too |
| with them in terms of pricing. However, the scheme | | | | harsh on any importer. Meanwhile, retailers welcomed |
| was opposed by many retailers who argued that the | | | | the decision of the Commission. Particularly, Horst |
| system would force them to increase their prices, a | | | | Widmann, the head of the Federation of European |
| situation that might result to the decrease of their | | | | Sporting Goods Industries, said that EU members |
| revenues. The temporary policy imposed on any | | | | have realized that imposing anti-dumping duties on |
| importer in the EU markets is due to expire in | | | | both Vietnam and China would not help any European |
| October. | | | | business. Instead, it would only put at stake the |
| The Commission, then, proposed a more formal | | | | interest of consumers and the competitiveness of EU |
| system in order to regulate any importer from China | | | | markets, but also the credibility of international trade |
| or Vietnam. The policy needs at least 13 votes from | | | | rules. |