EU court rejects appeal on China/Vietnam shoe duty

LUXEMBOURG, March 5 (Reuters) - A European court has rejected an appeal by a number of Hong Kong and China-based shoemakers against import duties levied by the European Commission on shoes originating form China and Vietnam.

Luxembourg-based EU General Court dismissed on Thursday all five appeals lodged by the companies against a decision by the EU's executive arm to impose tariffs of up to 16.5 percent on Chinese leather shoes and 10 percent on those from Vietnam.

"The adoption of anti-dumping duties is not a penalty for earlier behaviour but a protective and preventive measure against unfair competition resulting from dumping practices," the EU's second-highest court ruled.

The European Commission imposed the duties in 2006, following a complaint by European manufacturers who argued that they were unable to compete with shoes dumped in the European market by low-cost producers in China and Vietnam.

The dispute has heightened trade tension between the 27-nation bloc and China, its second biggest trading partner after the United States, and its biggest source of imports.

European Union ministers voted in December to extend the import duties for another 15 months, while Beijing launched a dispute at the World Trade Organisation last month over the EU tariffs, saying they were illegal. [ID:nTOE613091]

The companies argued that they were unfairly treated by the EU's executive Commission and were not given sufficient rights to defend the anti-dumping charges, and that the Commission failed to carry out a proper analysis of the market before making its decision.

The court rejected these arguments and dismissed the appeals. (Writing by Bate Felix; Editing by Louise Ireland)