Shoe retailers urged to keep prices steady

EU Trade Commissioner Peter Mandelson has urged retailers not to pass on higher costs to consumers, which he fears may be triggered by his proposed anti-dumping duties on leather shoes from China and Vietnam.

So far, he has recommended as much as a 19 per cent tariff on leather shoes made in the Far East, saying that duties were needed to stop shoemakers in Europe going out of business.

Defending his decision, which will come into effect in early April, Mandelson said the evidence over the past five years showed that retailers had not transferred the benefits of a 20 per cent drop in import prices to the high street.

He added that retailers made huge profits on shoes that cost as little as£5 from China.

The duties will be increased gradually, starting at 4 per cent and reaching their full value of 19.4 per cent against Chinese shoe exporters and 16.8 per cent against Vietnam after five months.

Children's and sports shoes will be exempt, the former to spare families extra cost and the latter because Europe's domestic production cannot meet demand.

Meanwhile, press reports suggest some retailers are planning to push producers to deliver autumn footwear orders up to a month early to avoid the tax burden.