FAIR

European shoe importers consider Austria’s approach in the EU conflict on anti-dumping customs duties on shoe imports from China and Vietnam counterproductive and dangerous.

Yesterday, Austria unexpectedly suggested a one-year extension of the provisional customs duties introduced in April 2006 to re-examine them afterwards. “This suggestion is completely incomprehensible, basically does not change anything and would have serious negative effects on the European shoe industries and their customers”, Paul Verrips, president of the Footwear Association of Importers and Retailchains (FAIR), is convinced. “It is still the same proposal that has already been dismissed by 14 EU Member States, including Austria. Merely the limitation has been amended.”

Austria’s abrupt change of position seems to be in close connection with Italian Prime Minister Prodi’s personal intervention. Italy and a few other southern European states hope to return a part of the far eastern shoe production back to Europe through the anti-dumping measures. “This is utterly illusive”, Verrips emphasises. “The duties have been in effect for half a year now, and there are no positive outcomes observable. Verifiable is, however, that import prices have risen in the first four month 2006 by 12 percent on shoes from China or even 19 percent on shoes from Vietnam. Anti-dumping customs duties impair the European customers to a considerable extent.”

Especially the preliminary limitation of the measures to one year, intended to form a compromise, evoked vehement disapproval throughout the association of European shoe importers. FAIR president Paul Verrips explains: “This limitation is as absurd and dangerous for the trade as the suggestion already dismissed. Moreover, it only lengthens uncertainty. For the trade, planning reliability is crucial. If the definite decision is delayed for another year, we do not know which additional costs we will have to face. From an operational point of view, this is an entirely unacceptable state the industry has been afflicted with from the beginning of the investigation.”

Within a very short period of time, this has already been the third proposal to anchor anti-dumping customs duties on a long-term basis. For Verrips, this is an indication for the fact that the EU Commission insists on implementing the anti-dumping measures, even if neither the European shoe industry nor the customers will benefit from them.

FAIR Footwear Association of Importers and Retailchains:

The association represents the interests of more than 100 footwear importers and retailers. Members are companies such as Columbia (France, USA), Clarks (United Kingdom), Deichmann (Germany), Wortmann (Germany), Leder & Schuh (Austria), Skechers (USA) und Vivarte (France), with a total of approximately 90.000 employees, which represent approximately 50 per cent of the import volume in the EU.

Filed under: Uncategorized on September 14th, 2007 | No Comments »

Tens of thousands of jobs and the interests of European customers fall victim to protectionist tendencies

Brussels – With an extremely close vote the Council of Ministers of the EU Member States today adopted the proposal of the European Commission to impose anti-dumping customs duties on footwear imports from China and Vietnam. “We will not accept this decision”, Paul Verrips, president of the Footwear Association of Importers and Retailchains (FAIR), declares. “It is directed against the interests of European customers and will lead to a loss of tens of thousands of jobs within the industry.” For footwear imports from China customs duties will amount to 16.5 percent, and shoes from Vietnam will be charged with 10 percent. “Extra expenses of this dimension cannot be absorbed, as the EU Commission has repeatedly claimed. The margins within our strongly competitive market are too small. The duties will inevitably lead to rising consumer prices”, Verrips continues.

The association considers legal measures against the anti-dumping duties. “Not only is this decision, but the entire investigation is characterised by heavy methodological errors. We have consistently pointed this out. Currently, we are checking for possibilities to appeal”, says Paul Verrips.

For months, the Member States have rejected the introduction of anti-dumping duties. “The majority of the Member States realised that these measures are neither reasonable, nor do they comply with the basic principles of the EU”, Verrips emphasises. “Massive political pressure on the part of southern European states helped the proposal to its arguable victory. Interestingly, the majority of EU states still reject the new regulations. 12 Member States disapprove of the anti-dumping customs duties and a mere nine states voted in favour of them. It is only a dubious particularity within the EU anti-dumping voting process that made it possible for the controversial duties to be introduced. Abstentions from voting are counted as “yes” votes, rather than abstentions from a position. Furthermore, the so-called compromise proposal plays another important role in the introduction of the duties. It proposes measures for two years instead of the initially intended five years, followed by a reassessment. “This so-called compromise, however, does not bring us any improvement”, Verrips stresses. The level of duties stays the same, and due to the subsequent review investigation, Member States and the Commission will only have to invest more money and time. This is an incredible waste of public funds. In fact, this so-called compromise only holds disadvantages.”

FAIR Footwear Association of Importers and Retailchains:

The association represents the interests of more than 100 footwear importers and retailers. Members are companies such as Columbia (France, USA), Clarks (United Kingdom), Deichmann (Germany), Wortmann (Germany), Leder & Schuh (Austria), Skechers (USA) und Vivarte (France), with a total of approximately 90.000 employees, which represent approximately 50 per cent of the import volume in the EU.

Filed under: Uncategorized on October 6th, 2006 | No Comments »

How the EU and its consumers could be made to pay for Member States’ wheeling and dealing behind the scenes

Brussels – The political circus surrounding anti-dumping duties against footwear imports from China and Vietnam has reached completely unacceptable levels. Paul Verrips, President of the Footwear Association of Importers and Retail chains (FAIR), finds the massive political pressure currently being exerted by certain EU Member States astounding; “This case no longer has anything to do with anti-dumping. Neither the facts nor Community interest would justify introducing the anti-dumping duties. However, in complete disregard of the merits of the case, Member States are being pushed to abandon their previous declared positions, either through bullying or bribes.” FAIR represents more than 100 companies, with more than 90.000 employees. Verrips finds it shocking that anti-dumping duties could be introduced at the behest of such a small group of EU-based footwear producers, thereby completely ignoring the interests of the majority of the EU footwear industry as well as the European consumer.

This is not the only problem. FAIR finds it particularly outrageous that any duties would try to support a group of producers that relies on subsidies to artificially maintain competitiveness, rather than facing the demands of global competition. Furthermore, it appears that some of the approximately 38 million Euro paid in recent years could have been issued as illegal state aid. FAIR is investigating the appropriate way to address this situation and is considering filing an official complaint.

Far worse are reports showing the fraudulent way in which certain producers obtain their subsidies. “It is appalling that producers which demonstratively violate European law should become the beneficiaries of this massive campaign”, states Verrips. “Not only have subsidy rules been violated, but labour standards are also being abused as well as the use of the “Made in EU”-label. The European Commission has documentation about these activities. FAIR is impelled to highlight these points, as Member States should take them into consideration when discussing these anti-dumping measures.”

FAIR is now convinced that it is no coincidence that this information has persistently been ignored throughout the investigation, and that the entire investigation works in favour of a small, but lobby-savvy branch of industry.

In a complaint sent to the European Ombudsman on 31 March, 2006, an EU footwear operator has complained about the Commission not respecting fundamental procedural rights in the current investigation. Although the Ombudsman set 31 July as the deadline for the Commission to give its views, the complainant has still not been notified of any Commission reaction. “This is unacceptable, particularly given the fact that the investigation will close in October at the latest and that definitive measures could have been adopted”, declares Verrips.

FAIR Footwear Association of Importers and Retail chains:

The association represents the interests of more than 100 footwear importers and retailers. Members are companies such as Columbia (France, USA), Clarks (United Kingdom), Deichmann (Germany), Wortmann (Germany), Leder & Schuh (Austria), Skechers (USA) und Vivarte (France), with a total of approximately 90.000 employees, which represent approximately 50 per cent of the import volume in the EU.

Filed under: Uncategorized on October 2nd, 2006 | No Comments »

The EU footwear industry has undergone dramatic changes over recent decades. Regrettably, the European Commission’s current proposal for anti-dumping measures on leather footwear ignores that evolution, and consequently endangers much of the EU industry.

The current investigation essentiallyattacks companies who focus on higher value-added activities.The allegation of dumping neglects the importance, both in terms of EU investments and employment, of the additional elements of footwear production, which include design, R&D, management, sourcing of raw materials, and technical production assistance. These additional elements are as essential as assembly, and add much more value in the production process.

Enlightened producers understood these facts in the 1980’s andrestructured in order to respond better to market signals. They concentrated value added activities in the EU and outsourced basic assembly activities. As a result, they now meet the requirements of “fast fashion” by making 800 models per season instead of 80.

Anti-dumping measures are called for by EU assemblers that did not prepare for the end of the quota system. However, anti-dumping measures will not help the complainant companies. EU assemblers cannot replace the imports which duties would render uneconomical.Their capacity is too low, their prices are too high and they lack the technology to meet modern consumer requirements. Moreover, anti-dumping measures hurt companies who are major customers of the assemblers.

The Community stakeholders share a responsibility to navigate a way out of this situation. Clearly, some footwear assembly should remain in the EU, but not at the expense of value-added employment. Indeed, to become the most competitive global economy, Europe needs to decrease employment in assembly relative to employment in higher value-added activities. This is exactly what enlightened companies have done. The majority of Member States have supported this by opposing anti-dumping measures.Member States that do not want to accept this are not doing themselves or their industry a favor.Ultimately, a decision of this importance should be taken on the merits, not on the basis of unrelated political compromises.

Filed under: Uncategorized on September 27th, 2006 | No Comments »

F.A.I.R. is pleased with the clear rejection of anti-dumping duties on leather shoes originating in China and Vietnam, by the EU Member States. F.A.I.R. notes that this rejection simply replicates the message Member States already gave to the European Commission at the provisional stage of these proceedings. At that moment (in March 2006) however, the European Commission decided to nevertheless impose anti-dumping duties.

According to F.A.I.R. President Paul Verrips: “Throughout the proceeding, F.A.I.R. has always strongly argued that anti-dumping measures are against the interest of European consumers and footwear companies. We are highly satisfied that the Member States have clearly confirmed this by opposing the proposal of the European Commission”. Moreover, F.A.I.R. also observes that the ultimate outcome of this vote vindicates its conviction that the information upon which this proposal was based was highly unreliable.

With this being the second proposal to be rejected by Member States, Mr. Verrips considers that it will be difficult for the Commission to come with a new proposal. Therefore, F.A.I.R. expects that the rejection of this proposal will be formally confirmed in September.

F.A.I.R. - Footwear Association of Importers and Retail chains:

F.A.I.R. represents the interests of more than 100 EU footwear companies and includes companies such as Colombia (France, USA), Clarks (Great Britain), Deichmann (Germany), Wortmann (Germany), Leder & Schuh (Austria) and Vivarte (France). F.A.I.R. members are established in 14 Member States, have a total turnover of over 17 billion and provide direct employment to approximately 90,000 people. In this anti-dumping case, F.A.I.R. members represent about 50% of the concerned imports and have a market share of 30%.

Filed under: Uncategorized on August 7th, 2006 | No Comments »