The Indonesian Shoe Association has begun investigations over dumping circumventions on Nike and Adidas producers in Indonesia following allegations made by Brazil. The association's secretary-general Binsar Marpaung said the investigation would take one month.
we must investigate and clarify this first because it's a sensitive matter, he told Tempo yesterday. After the investigation on 10 shoe factories belonging to both brands is complete, the association will be able to verify the allegations.
Binsar said the Brazilian Footwear Industries Association (Abicalcados) filed the accusation on October 4. The association promised to obey the antidumping circumvention principles. we won't support circumvention, said Binsar, calling on the Brazilian government to be fair.
On a separate occasion yesterday, Trade Minister Gita Wirjawan said he was still studying the allegation.
Previously, the Trade Ministry's trade security director Ernawati said Brazilian businessmen had asked for antidumping protection against Indonesian exported shoe products.
Since July 2010, Brazil has accused Indonesia, Vietnam and Malaysia of dumping cheap shoes from China on the Brazilian market. Ever since, Brazil has been reinforcing its antidumping circumvention law by applying a regulation which requires 40 percent local content on exported products and 25 percent additional content.
