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Chinese shoemakers plan to file a suit against the EU contesting the legal and factual basis of new EU anti-dumping measures.

"We have retained our attorney and will file a suit with the European Court of Justice," according to sources with Aokang Group, a shoemaker based in Wenzhou City, Zhejiang Province. "We will fight to the end to safeguard our rights by following international rules."

But analysts say it is hard to predict how the European Court will decide.

The EU adopted a new policy on October 5, which reduces the normal five-year anti-dumping term to two years and imposes anti-dumping duties of 16.5 percent on Chinese shoemakers.

China's Ministry of Commerce told Xinhua on Monday the EU decision to impose anti-dumping duties on China-made leather shoes contradicts the principle of free and fair trade advocated by the World Trade Organization (WTO).

Wu Zhenchang, chairman of Chuangxin Shoemaking Company in Panyu, south China's Guangdong Province, and sponsor of a union of Chinese shoe producers fighting EU anti-dumping measures, said more than 70 percent of shoe-related orders will probably shift to Southeast Asia in the next two years because no European dealer would be willing to pay the newly-imposed tariff.

"This will affect Chinese shoemakers' competitiveness because European shoe dealers will develop alternative sources of supply in two years," Wu said.

According to EU figures, China exported 1.25 billion pairs of shoes to Europe in 2005 and has 50 percent of European market share. Chinese figures show that China exported 700 million pairs of shoes to Europe in 2004.

Wu Chunyue, general manager of Aokang Group, estimated that China's exports of shoes to the EU will plummet by 40 percent in two years.

China has lodged complaints related to anti-dumping issues with the European Court in the past but only one decision was made in China's favor.

Experts have suggested submitting the matter to the WTO if China believes the EU anti-dumping measures violate WTO principles.

(Xinhua News Agency October 10, 2006)