After a lengthy investigation and intensive lobbying by all interested parties, the Brazilian government decided on March 2 to extend the anti-dumping duties on footwear imports from China that it imposed in 2009. They will run for a further five years, the maximum allowed by the World Trade Organization, but the surcharge will be lowered from US13.85 per pair to US$10.22.
While many sports brands have switched from China to Vietnam as the source for the shoes that they are importing into Brazil – and into other countries as well – Brazil's shoe imports from China continue to be mostly relatively technical athletic shoes.
Apice, the Brazilian sporting goods industry association, and the World Federation of the Sporting Goods Industry said it was too early to say whether there will be an appeal of the decision or any other action.
Local and international brands are now making many of their athletic shoes in Brazil even more than in the past because of duties as well as the devaluation of the Brazilian real.
In calling for an extension of the duties, the Brazilian shoe industry association, Abicalçados, pointed out that Brazilian shoe manufacturers would have been severely damaged by their removal after a year in which their total production fell by an estimated 7.6 percent due to shrinking demand from the domestic market because of the country's economic recession.
Brazil's shoe imports from China have fallen by 80 percent from the $183.6 million that they had reached in 2009, prior to the duties. Their share of total imports has declined from 70 to 18 percent.