Duty and freight rates hike to impact on European imports
published: cw 24, 2006 in Global Trade & LogisticsEuropean retailers have warned of the dangers which a resurgence in protectionist policies could have on the regional economy.
In particular there are fears that Peter Mandelson, the European Union’s Trade Commissioner, intends to impose duties of up to 20% on imports of shoes from China and Vietnam for another five years as well as extend them to children’s shoes. This follows last year’s Bra Wars fiasco when an ill-conceived plan to limit the amount of imports of clothing dramatically backfired costing European consumers and retailers millions when shipments became stuck in ports and warehouses.
This time round retailers fear that the impact of tariffs will be even more severely felt due to the recent rise in shipping costs from the Asia Pacific region combined with falling demand in European high streets. The British Retail Consortium estimates that the freight costs increase will add 30 per cent to the cost of transporting a shipload of shoes from the Far East. Rising fuel costs have been blamed for the rate increases which have been introduced by the Far East Freight Conference.
As last year, the controversy is likely to split members of the European Union. Textiles, clothing and footwear are still important manufacturing sectors in southern European countries such as Portugal, Spain and Italy. These countries also have strong lobby groups with a protectionist interest in keeping cheap Far Eastern imports out. However in the north of the region, major consumer markets such as UK, Benelux, Nordics and Germany will feel the brunt of any moves by Mandelson to appease uncompetitive European producers. Retailers also warn that plastic bags, furniture, home-wares, bathroom accessories and jeans are also future targets for EU import duties.
Source: Transport Intelligence
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