Court backs EU anti-dumping duties on Chinese shoes

(BRUSSELS) - A European court has ruled that a decision to impose anti-dumping measures on shoes from China and Vietnam was sound, a court statement Brussels said on Thursday.

Beijing has filed a complaint with the World Trade Organisation accusing the European Union of imposing illegal duties after the EU extended for 15 months, at the end of 2009, penalty taxes that were first imposed in October 2006 on shoes with leather uppers from the two countries.

The General Court, a branch of the European Court of Justice, ruled against Chinese footwear producers in a series of six cases where "applicants requested annulment of the 2006 regulation," the statement said.

"The anti-dumping measure ... thus remains in force," it added.

The challenges cited what were of faulty and erroneous analysis of the costs of Chinese and Vietnamese imports to European Union producers, who include some of the biggest brand names in the footwear world.

The court "rejected all of the applicants' claims and dismissed the actions for annulment," ordering them "to pay their own costs and the costs incurred by" the EU in defending the cases.

Beijing announced at the start of February that it was filing a complaint with the WTO. If the two sides do not reach an agreement within 60 days, the WTO complaints body will rule on the case.

European Trade Commissioner Karel De Gucht was in Hanoi on Tuesday to open negotiations with Vietnam on a free-trade agreement with the EU.

He said there that the European Commission had a "very solid case" in its imposition of anti-dumping measures against shoes from China and Vietnam.

T-407/06 Judgement 2010-03-04 - Zhejiang Aokang Shoes v Council

T-408/06 T-407/06 Judgement 2010-03-04 - Zhejiang Aokang Shoes v Council