China files WTO complaint against EU's shoe levy

China on Thursday launched a complaint with the World Trade Organization (WTO) against the European Union's anti-dumping measures on Chinese-made shoes.

The matter will be addressed under WTO's dispute settlement system, the Ministry of Commerce (MOC) said in a statement posted on its website. The first step in the process can last for up to 60 days. If no agreement is reached, China can request that the trade body rule on the matter.

In December, the European Commission decided to extend by 15 months the anti-dumping measures it had imposed in 2005 on Chinese and Vietnamese leather shoes, based on evidence of dumping, according to Xinhua. The duties amount to 16.5 percent for Chinese imports and 10 percent for Vietnamese. Originally, the duties were supposed to be removed at the end of last year.

This, according to MOC spokesman Yao Jian, is on violation of trade rules.

"The EU's anti-dumping probe and ruling violated WTO rules and undermined the legitimate rights and interests of Chinese companies," Xinhua quotes Yao as saying in the statement.

The EU defended its penalty taxes as "the right thing to do," according to AFP.

"Anti-dumping measures are not about protectionism, they are about fighting unfair trade," acting EU Commission Trade Spokesman John Clancy said.

Chinese shoe manufacturers have denied the dumping allegations and demand that the matter be settled by the WTO.

While the EU's executive arm is concerned about unfair trade from China, the European Footwear Alliance (EFA) supports Beijing's position as its members produce in China a lot of the shoes which are penalized.

"Ironically, the measure hurts European business and consumers the most," AFP quotes the alliance as saying in a statement.