EU protectionism rises — from shoes to steel

The EU needs to understand that trade barriers limit growth and economic recovery — as well as harming its own companies and consumers.

The new barriers, listed by the independent Global Trade Alert, include an “antidumping” duty on iron or steel fittings exported from Taiwan (whatever the country of origin). These self-harming responses to the recession are in addition to the long-standing massive Common Agricultural Policy which subsidizes inefficiency and blocks cheaper imports.

On Dec. 22, The EU prolonged tariffs of up to 16.5 percent on Vietnamese and Chinese leather shoes, started in 2006 and due to expire in 2008: this is a good example of the EU's attitude.

Some European shoe producers and trade associations claim that without the tariffs they are vulnerable to cheap imports that cost jobs in Europe. The Vietnamese and Chinese producers say that the tariffs prevent competitive producers providing employment for some of the poorest people on Earth. Both sides are right.

But EU Ministers should be supporting competitive EU businesses, the life-blood of future growth. Only shoe companies that have refused to adapt to modern globalize production want these tariffs: “the EU prefers to follow its protectionist course at the expense of successful European footwear businesses and consumers,” said Manfred Junkert, Director of the Federation of the German Footwear Industry, after the December 22 ruling by EU Ministers.

For many years some of Europe's top labels have been cutting costs to remain competitive in the cut-throat fashion industry, including outsourcing to China and Vietnam. Denmark's Ecco has invested heavily in production there since 2003, and already had investments in Indonesia and Thailand in the 1990s. “The tariffs do nothing but harm consumers, retailers and Europe's modern footwear industry,” Ecco vice-president, Gerd Rahbek-Clemmensen, said after the ruling.

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