FAIR

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