Shoes get cheaper in Europe, what about US?

by YankeeJim | January 12, 2011 at 11:17 am

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Asia producers undermine every market to which they export by “dumping,” a lump term that applies to governments giving unfair competitive advantage to their manufacturers. Unfair competitive advantage is in the eyes of the beholder. All governments find ways to assist their manufacturers or else producers will simply go out of business and move away as they have abandoned the USA.

Government policy favoring industrial development isn’t a bad thing at all.

If you look at this picture, you might wonder if the shoe manufacturers are skimping on materials. No wonder they are so cheap.

“Shoes to get cheaper as East wins latest battle in footwear war

Staying well-heeled could become less of an strain for shoppers after European shoemakers said they will no longer fight for tough tariffs on footwear imported from Asia.

By Emma Rowley 4:43PM GMT 12 Jan 2011

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The European Confederation of the Footwear Industry, which represents shoemakers in Brussels, said it would now look for strict monitoring of imports, instead of calling for an extension of the duties, which are estimated to have totalled over €1bn (£830m).

"We no longer have the support of EU governments and if we go on (asking) like this we will lose, for sure," Vito Artioli, chairman of industry body, told Reuters.

"So we decided to have other guarantees."

The EU duties on leather shoes – some 16.5pc for China and 10pc for Vietnam – are set to expire in April. They were introduced after European manufacturers accused Chinese and Vietnamese rivals of illegally dumping millions of shoes on European markets at low prices, thanks to hidden government subsidies such as free rent or tax breaks.

The British Retail Consortium welcomed an end to the tariffs, which it said prioritised the interests of "inefficient" manufacturers at the expense of customers. "Retailers are pleased to see moves which will help keep footwear prices down," a spokeswoman said.”