Director of Traning Security : THE SHOE INDUSTRY WARNED TO ANTICIPATE ANTI DUMPING DUTY IMPOSED BY BRAZIL

The Government warned players of footwear industry in Indoesia to anticipate the possibility of anti dumping duty (ADD) imposed by Brazil on a number of footwer producers in the world including Indonesia. The imposition of ADD by Brazil might harm natiol export performance of footwer, considering that Brazil was Indonesia’s main export destination of footwer in Latin America.

Ernawati, Director of Trade Safeguarding, Directorate General of International Collaboration in trading, Minisitry of Trade, disclosed to BusinessNews on Monday (26/7) that the World Federation of Sporting Grade Industry (WFSGI) informed that the Brazil footwear industry had urged the Anti Dumping Authorities to impose ADD of US$ 13.85% on products from China, who also intended to impose ADD on some countries including Indonesia.

This was due to grievances among the footwear industry in Brazil after upjump of import from Malaysia, Vietnam and Indonesia amounting to 20%, 93% and 37.2% respectively in 2009. The Anti Dumping Authorities of Brazil suspected there had been unhealthy eport practices by China by using third countries like Singpore, Vietnam, Malaysia and Indonesia. “Malaysia is not a sizeble footwear producer, and so is Singapore, but import from the two countries up quite significantly” Ernawati remarked.

The Brazilian Shoes Producers Association had asked the Anti Dumping authorities in Brazil to impose ADD new investigation. The association reported that up to Quarter 1 of 2010 there had been mass dismissals of around 42,000 workers in the foorwear industry in Brazil.

Eddy Widjanarko, Chairman of the Association of Indonesian Footwear Produces (Aprisindo) remarked that the plan to implement ADD by the Government of Brazil on Indonesian footwear products must be seriously responded by players of the national footwear industry. This was important because export of shoes to this giant soccer nation was considerably big. Aprisindo recorder US$ 20.3 million, constituting 1.2% of total national footwear export of US$ 1.7 billion.

“We will foster coordination with the Ministry of Trade to anticipate plan of the Brazilian Government. A good number of out members export footwear to Brazil, so we will inform this to our members” Amidst the tight competition in the domestic market, shope producers must maintain consistency of export so sales performace at national scale, that sales may remain stable. “Anticipating Brazil’s ADD plans an effort to sustain consistency”.