Brussels, 05/03/2012 (Agence Europe) - Following the WTO verdict in autumn 2011, which ruled that the EU's anti-dumping taxes against Chinese imports of shoes with leather uppers was illegal, the European Court of Justice has also just ruled against the EU and ordered Chinese exporters who had been penalised, to be reimbursed.
At the beginning of February, the EU Court of Justice finally ruled in favour of the Chinese companies Brosmann Footwear (Hong-Kong) Ltd, Risen Footwear (HK) Co Ltd, Seasonable Footwear (Zhongshan) Ltd and Lung Pao Footwear (Guangzhou) Ltd, which had complained about anti-dumping taxes of 16.5%, introduced by the EU in 2006 and extended in 2009, on leather upper shoes imported from China (and from Vietnam, whose products were taxed up to 9.7%).
Although the four manufacturers will benefit from this initial verdict and repayment of the taxes paid, in the long term between 400 and 500 large and small exporters may also be able to obtain compensation. According to the Chinese press, these companies could benefit from up to €1 billion.
The shoe war broke out in 2006. A number of shoe manufacturing businesses closed down, particularly in France, Italy and Portugal, due to the companies relocating business to Asia. The Commission therefore ruled against the dumping of shoes made in China and Vietnam.
Following several conciliation attempts, China took the case to the WTO in February 2010 and won its case last October. In November 2009 the anti-dumping tax was extended for two years but due to pressure from European manufacturers operating in Asia it was not renewed last year. (EH/transl.fl)