Leahy and Rose tell Europe to avoid Far East trade barriers
Top retailers including Marks & Spencer chief Stuart Rose and Tesco boss Sir Terry Leahy have joined forces to lobby EU trade supremo Peter Mandelson against taxes on Chinese imports.

The retail giants have united to write a letter to Mandelson urging the EU not to impose further knee-jerk restrictions on imports from the Far East.

The letter, fronted by the British Retail Consortium (BRC), was spurred by the threat of taxes on leather shoes and carrier bags imported from China, which would pile costs onto retailers and consumers.

It is understood that at least 10 top industry names, also including New Look chief executive Phil Wrigley and Clarks chief executive Peter Bollinger, have given their support to the document.

The letter, seen by Retail Week, urges the EU to take a structured approach to dealing with cheap imports from the Far East and not to give in to member states that argue globalisation is damaging their manufacturing industries.

BRC director-general Kevin Hawkins said: 'We need to get away from this protectionist knee-jerk product-by-product, category-by-category reaction, which is taking us nowhere.

'The retail sector is keen to build on the lessons learnt from this summer's textile dispute and engage with all EU institutions in a better-informed debate about how we are going to deal with China and India.'

The letter argues that imposing taxes on imports will benefit only a minority of EU countries that have significant shoe manufacturing industries, such as Italy and Spain, at the long-term expense of consumers.

Hawkins said: 'If there are duties imposed on products, consumers will pick up the bill.'

The letter stresses that any duties imposed on shoes or plastic bags would send out the wrong signals about Europe's commitment to remaining competitive globally. The retailers are looking for a response before a committee of the European Commission meets to discuss the issue in January.

Tensions between UK retailers and the EU reached a peak this summer when fashion stock was held in limbo at ports, after limits were slapped on textile imports with little warning.