FAIR

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