March 24, 2006	Friday	Safar 23, 1427

BRUSSELS, March 23: The European Commission said on Thursday it would slap temporary anti-dumping duties on Chinese and leather shoe imports as of April 7 to protect EU manufacturers from “unfair trade”. The duties are to be imposed gradually over five months and will rise to 16.8 per cent for leather shoes from Vietnam and to 19.4 per cent for leather shoes from China. Children’s shoes are not covered by the measures.

“It is important that we act against unfair trade while encouraging legitimate and competitive from emerging economies,” EU Trade Commissioner Peter Mandelson said.

“We do not target China and Vietnam’s natural competitive advantages, only unfair distortions of trade,” he added

The commission said the duties were needed because Chinese and Vietnamese manufactures could count on state aid in the form of soft loans, tax breaks, low rents, fuzzy accounting, overlooking doubtful accounting and export incentives.

Mandelson called for the duty last month after finding evidence of dumping but his proposal divided member states who were unable to give clear backing to go ahead with the measures.

But because they did not agree to reject it either, Mandelson decided to go ahead with duty.

—AFP