China shoe firms in EU spotlight

European shoe firms claim their livelihoods are in danger

European Union (EU) Trade Commissioner Peter Mandelson has called for an investigation into whether Chinese shoemakers are dumping shoes in Europe.

Mr Mandelson met with representatives of Europe's footwear industry after they demonstrated in Brussels.

The EU estimates Chinese shoe exports have jumped seven-fold since the start of the year, while prices have dipped.

Mr Mandelson said that he would not "fight shy" of taking action should it be needed.

The European Commission must now approve the investigation, and should it agree, the investigation will get underway at the end of June, spokeswoman Claude Veron-Reville said.

Dumping ground?

This is the latest trade row between China and the EU since the global Multi Fibre Agreement ended on 31 December 2004.

Last week, the EU and China agreed a deal to limit exports of Chinese textiles into Europe after last-ditch talks to calm a trade row.

China has been accused of flooding European and US markets with cheap products, threatening local producers who have a more expensive workforce and higher costs.

China is accused of unfairly gaining a foothold in Europe's shoe market

A rise in imports had been expected but dumping, however, is a more serious situation whereby Chinese producers sell their slippers and shoes at less than cost price in order to win market share.

According to EU figures, the price of Chinese shoes have dropped by almost a third in the first four months of the year.

"The European Commission must adopt defence measures," said Raphael Calvo, chairman of the European Confederation of the Footwear Industry.

Mr Calvo has called for anti-dumping duties to be placed on Chinese footwear.

China has said that Europe needs to provide more detailed evidence of any abuse of international trade rules and negative effects on local firms.

Last week, China said it viewed the textile row as a test of whether developed countries were serious about fairness in enforcing free trade rules.

Negotiators warned that China may delay opening up its massive domestic market to foreign firms if its manufacturers are penalised.