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EU anti-dumping harm to Chinese shoe industry
The EU's anti-dumping case against Chinese leather shoes, which began in 2005, has significantly impacted the export of Chinese footwear and led to a continuous decline in European shoe exports. This long-standing trade issue has created a challenging environment for both Chinese manufacturers and European exporters.
On December 1, 2010, Mr. Robbert, Secretary General of the World Federation of Sporting Goods Industry (WFSGI), visited the China Leather Association. The meeting included trade attorney Edwin Vermulst, representatives from major brands like Nike and Adidas, as well as officials from the China Sporting Goods Federation. On the Chinese side, Li Yuzhong, Deputy Director of the China Leather Association, Director Wei Yafei, and Pu Lingchen from Zhong Lun Law Firm participated. The discussion focused on the current international trade challenges facing the Chinese footwear industry.
Vice President Li Yuzhong welcomed Mr. Robbert and provided an overview of the China Leather Association’s activities. Mr. Robbert shared insights about the global sporting goods industry, while Director Wei Yafei highlighted China’s growing focus on Latin America, particularly in the first half of 2010, when the footwear export situation remained challenging due to rising trade barriers.
Amid the global financial crisis, China’s footwear exports saw minimal growth in 2009. In the second half of that year, several Latin American countries, including Brazil, Argentina, Peru, and Ecuador, introduced protectionist measures against Chinese footwear. For example, Brazil imposed anti-dumping duties of $13.85 per pair of shoes for five years starting in March 2010. Argentina set a minimum reference price of $13.38 per pair, with tariffs applied to products below this threshold.
Latin America is one of the most promising emerging markets, driven by economic growth and a rising middle class. Despite the imposition of anti-dumping duties, China’s footwear exports to the region increased significantly in the first half of 2010, especially in plastic products. However, overall export volumes declined, and unit prices continued to fall, reflecting intense market competition.
Mr. Robbert warned that the trade environment was deteriorating, and anti-dumping measures in Latin America could be extended or intensified. This poses a serious threat to both Chinese manufacturers and brand operators. Nike mentioned that some major brands were considering relocating production to avoid these duties, while Adidas noted that although production in China had remained stable, growth was being shifted to other regions. As a result, China’s share in Adidas’s global procurement has been declining, which is not favorable for the development of the Chinese footwear industry.
With the 2014 FIFA World Cup and the 2016 Summer Olympics set to take place in Brazil, global brands are increasingly targeting Latin American markets. However, ongoing trade disputes remain a major obstacle to market expansion. Unlike the EU’s targeted anti-dumping measures on leather shoes, Brazil has imposed duties on all types of footwear, affecting a broader range of products and leading to more severe consequences.
The two parties reached an initial agreement during the meeting, expressing a commitment to enhance communication and information sharing to address the worsening trade situation. They emphasized the importance of leveraging the upcoming anti-dumping review in Brazil in March 2011. They called for greater participation from manufacturers and collaboration between brands to build a unified front and achieve favorable outcomes.