Global footwear producers have slammed the European Commission’s proposal this week to extend anti-dumping duties on EU imports of Chinese and Vietnamese shoes for a further 15 months.

The duties have already cost the members of the European Footwear Alliance $1.18 billion and the EFA, who represents manufacturers such as Nike, Adidas and Timberland, said that the duties will only cause yet more harm to the consumer.

‘Prices have increased by on average 10 percent since the imposition of the duties in 2006,’

the EFA said.

The proposal, which would take effect from January if approved, is deeply unpopular with manufacturers, retail groups and member states alike. The 27-nation bloc is struggling to deal with the worst economic downturn in decades and retailers were hoping for a boost before the crucial Christmas retail period. Instead, this protectionist policy will increase the pressures on both producers and consumers. 15 member states, backed up by retail and consumer groups oppose the duty and have called for it to be scraped immediately. 

Who then stands to gain from this proposal?

According to the EFA and the British Retail Consortium- no one! Certainly not manufacturers who face inflated costs and tighter consumer spending. Certainly not consumers, who ultimately will foot the bill in increased prices to effectively subsidize the ailing footwear producers elsewhere in Europe. Also not the Chinese and Vietnamese exporters, who have already threatened the EU with legal action at the WTO over the affair, as it unfairly marginalizes their export businesses.

It seems the only advocates of this proposal are the dwindling shoe producers in Poland, Italy, France and Spain, who lobby (it appears successfully) for the public to pay for their un-competitive prices to be protected. It is, as a statement from major retailers including Marks and Spencer and Metro protested, ‘farcical.’