EU ministers fail to give shoe tax the boot

Authors:

Alec van Gelder

Timothy Cox

2009-12-22: After months of flip-flopping, EU Ministers have today shamefully voted to extend the tariffs of up to 16.5 per cent imposed upon Chinese and Vietnamese shoe imports since 2006. The decision condemns cash-strapped European consumers and struggling retailers to higher footwear prices for a further 15 months.

As we have previously reported, the tariff has already cost European businesses to the tune of $1.18 and the European Footwear Alliance, which represents manufacturers such as Nike, Adidas and Timberland, claims that the tariff extension will cost its members a further €1bn in tariff levies as they try to import their products into the EU.

Proponents of the tariff claim that it is needed to protect ailing companies that still manufacturer in Europe, mainly in Italy and Portugal. But in reality these producers are uncompetitive and unreliable and are increasing the costs for those manufacturers who have chosen to source their products from outside of the EU in order to keep the prices of footwear down.

It caps off a terrible year for retailers who are struggling through the worst economic downturn in decades, and who will gain little festive cheer from this latest piece of self-harming EU policy.