The European Union’s plan to impose anti-dumping duties on Vietnam’s leather-capped shoes will cause adverse impacts on the Vietnamese economy as it faces a lot of difficulties derived from the global economic crisis.
President of the European Chamber of Commerce (EuroCham) in Vietnam Alain Cany stated that comment at a press briefing in Ho Chi Minh City on December 15.
What the EU Council of Ministers and governments plan to do is a wrong measure, he said, adding that EuroCham, a large community of European businesses in Vietnam, opposes the decision.
The European Commission (EC)’s report on their term-end review made public on Oct. 13 said that Vietnam’s leather-capped shoes have continued dumping and proposed an extension of the penalty taxes for another 15 months (from January 2010 to March 2011). Ambassadors and ministers of 27 EU countries will meet on December 17-22 to make a final decision on this issue.
Mr. Alain said that the European business community in Vietnam will closely cooperate with the Vietnamese government in finding evidences proving the transparency and self-reliance of Vietnamese footwear enterprises.
Several EU members have not agreed with the EC’s technical calculation in this case, said Alain, adding that the calculation should be replaced by other solutions that are suitable to the situation in Vietnam but abide by Generalized System of Preferences (GSP) regulations and minimize possible damages on Vietnamese footwear producers and workers.
According to the EuroCham President, the EU should continue useful support for Vietnam as it had done before through its sound investment decisions and full respect for trade commitments between the two sides.
He affirmed that he himself will do his utmost to persuade European politicians to back Vietnamese businesses.
The EC’s imposition of a 10 percent anti-dumping tax on Vietnam’s leather-capped shoes over the past three years and its recent decision to eliminate the country’s footwear sector from the list of GSP beneficiaries during the 2009-2011 period have caused harm to the Vietnamese footwear makers employing more than 650,000 laborers.
Many politicians and business communities of not only Vietnam but also other countries have raised voices to protest the EU’s unreasonable proposal. They said that the imposition is not conformable to the EU’s common policy to boost trade liberalization and prevent the return of protectionism.
The plan will also lessen the effectiveness of poverty reduction programs that EC and member countries have implemented in Vietnam as well as cause negative impacts on the developing relationship between Vietnam and the EU, they added.