It seems that we may have been overly optimistic in celebrating the likelihood of an EU shoe tax on imports from China and Vietnam being repealed. The confusing on-again, off-again debate about tariffs on shoes from East Asia now looks set for another extension after news reports indicated that Germany, Austria and Malta intend to abstain from the legally binding vote on the issue scheduled for 22 December.  Due to bizarre and arcane EU rules these abstentions effectively count as a vote in favour of the Commission’s proposal to extend the absurd tariffs. These three abstentions lend enough support to other EU Members who want to pass the proposal to extend the EU Shoe Tax for another 15 months, as of January.

The motives for their abstention have not been revealed, but it is evident that lobbyists for the ailing European footwear producers have been hard at work, trying to “protect” their uncompetitive products from cheaper imports. As we noted previously, this “protection” harms EU consumers by driving prices of footwear up and also costs jobs in China and Vietnam, against whom the tariff discriminates.  Perhaps most egregiously of all, it sets a dangerous precedent that will inevitably raise the eyebrows of protectionists from across Europe.  EU consumers, and EU businesses that rely on the European and the global market to succeed, beware.

A final decision on is due on the 22nd of December- watch this space!