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Mexico Considers Suit against Vietnam

Industry- & Retail Organizations

HANOI, Vietnam – Mexico is considering launching legal action against Vietnamese footwear producers for allegedly dumping shoes on the Mexican market, according to the Ministry of Trade.
According to the leather shoe industry office in Mexico, the export of cheap Vietnamese shoes to Mexico have increased 132% in recent years, from 6.8 million pairs in 2003 to 15.8 million in 2005, with a low price of US$ 5-8 each.

Mexico Considers Suit against Vietnam

HANOI, Vietnam – Mexico is considering launching legal action against Vietnamese footwear producers for allegedly dumping shoes on the Mexican market, according to the Ministry of Trade.
According to the leather shoe industry office in Mexico, the export of cheap Vietnamese shoes to Mexico have increased 132% in recent years, from 6.8 million pairs in 2003 to 15.8 million in 2005, with a low price of US$ 5-8 each.
 
The sharp increase in the quantity of Vietnamese shoes exported to Mexico may have a negative effect on Mexico’s own footwear industry, the office asserted. The Vietnam Leather and Footwear Association said they had warned member enterprises involved in exporting footwear to Mexico to prepare for a possible anti-dumping action and to adjust their export volume projections accordingly.
 
The impact of an additional anti-dumping dispute on the domestic footwear industry would not be as bad as that caused by the EU anti-dumping lawsuit, said association president Nguyen Gia Thao, but he warned that domestic producers should be cautious and draw up the suitable means to minimize difficulties for the country’s footwear industry.
 
Vietnamese manufacturers have faced 25 trade-related lawsuits to date, of which 21 were anti-dumping disputes, said Dinh Thi My Loan, director of the Competition Administration Department.
 
In the period of 1994-2001, the country faced only one or two anti-dumping suits per year, but the figure increased sharply during 2002-05, said Loan.
 
She noted that Vietnam faced three anti-dumping disputes in 2005 alone related to products from footwear to fluorescent lights and motorbike and bicycle parts.

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