Trade row

The Chinese commerce ministry said Beijing was "strongly dissatisfied" with the European Union's decision to extend a ban first imposed three years ago by a further 15 months. It said that the country would take the matter to the World Trade Organization (WTO).

"The Chinese government ... will appeal to the WTO dispute settlement mechanism and take measures accordingly to seriously protect the legitimate interests of the Chinese industry," ministry spokesman Yao Jian said.

The European Commision said that contining with import taxation into 2011 would give European firms the necessary protection to adjust and be competitive in global markets.

Duties to protect leather makers

The shoe tax was designed to protect European leather manufacturers from "dumping" – when foreign companies sell products at less than market value – by Asian competitors.

"The removal of measures at this stage would lead to increased dumping and injury, and potentially halt the adjustment process of an industry which employs over 260,000 workers in the EU," the European Commission said in a statement.

Import duties of 16.5 percent are levied on Chinese shoes with leather uppers, with a 10 percent tariff on shoes from Vietnam.

The EU has been accused of dumping carbon steel metal fasteners, such as bolts and nails, onto the Chinese market – directly harming the domestic market.Importers of the European products in China will have to pay duties of up to 24.6 percent from December 28.

Yao, though, said that European and Chinese products did not compete directly with one another in the European footwear market. He said that anti-dumping measures, which are also controversial within Europe, were "meaningless".

The European Commision had still not commented on the tax on steel products early on Wednesday evening.

Protectionism complaint

European firms that make shoes in Asia, such as Diesel, Adidas and Puma, also fought against the renewal of the tariffs. The European Footwear Alliance said the EU decision showed that Brussels was not serious about fighting protectionism.

"The EU's opaque trade policy will result in payment of anti-dumping duties well in excess of one billion euros for European footwear businesses, which will ultimately be paid for by EU consumers," it said in a statement.

European Commission figures show that Chinese and Vietnamese shoes make up 30 percent of the EU footwear market.

While China is the EU's biggest source of manufactured goods, European exports to China are of minor economic significance.

rc/dpa/AFP
Editor: Chuck Penfold