[Vnbiz] EIU Eu set to place tariffs

[Craig Stevenson]

COUNTRY BRIEFING

FROM EUROPEAN VOICE

By Lorraine Mallinder

The European Commission is likely to receive a ringing endorsement from the
European Parliament for its proposals for duties on imports of cheap leather
shoes from China and Vietnam. The issue will be discussed in a plenary
session of Parliament next week (11 October).

The controversial measure was adopted yesterday (4 October) by a majority of
member states after weeks of heated debate. A free-market coalition led by
Sweden (in a majority of 14 when proposals were first made in August)
eventually lost out to protectionists such as Italy and France after the
latter proposed that the period of application for the measure be reduced
from five to two years. Italy had mounted an intensive high-level lobbying
campaign aimed at winning over opponents.

"Of course we are disappointed, but there were indications of this before.
It does not come as a shock," said one Swedish diplomat. The abstention of
Cyprus, Malta, Austria and Slovenia swung the vote in favour of the measure,
which comes into force tomorrow (6 October). Duties of 16.5% and 10% will
now be imposed on shoes from China and Vietnam respectively.

The Parliament's committee on international trade welcomed the measure. "I
think this is good news," said Spanish Socialist MEP Enrique Barón Crespo,
who chairs the committee. "We think the Commission has taken a sound
decision. We have to keep borders open, but the Commission was right to
introduce this measure."

A resolution approving the measure will be adopted in Parliament next week.
"When we look at figures, we see that there is an invasion," said Barón
Crespo. "Parliament will support this measure by a vast majority. We had a
debate on this yesterday [3 October] and many members expressed concerns not
on establishing trade barriers, but on allowing unfair trade competition."

Peter Mandelson, the trade commissioner, who yesterday presented a review of
EU trade policy, which would include a rethink on trade defence instruments,
said: "The decision taken today, which was a necessary one as it follows the
investigation [we] made, actually reduces the period of application of the
measure... That would indicate a clear line of thinking among member states.
It's certainly not a protectionist line of thinking."

Questioned on the irony of a UK commissioner supporting an ostensibly
protectionist measure, Mandelson said: "I make no apology for championing
European interests." He defended his actions, saying that the ultimate aim
of the Commission was "to promote free trade, not to fight low-cost
competitors".
The Economist Intelligence Unit
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