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The European Commission is likely to propose a 15-month extension of controversial duties on shoes made in China and Vietnam, European Union diplomats said, despite broad opposition from major shoe corporations and many European governments.

The commission, the E.U.'s executive arm, is expected to argue that Chinese and Vietnamese shoe companies are clearly shipping their products to the E.U. at below market prices - especially compared with the price of shoes made in other developing countries such as India, Brazil and Indonesia.

The commission is also expected to argue that the duties, which are 16.5% on Chinese and 10% on Vietnamese shoes, have cost European consumers only EUR1.50 per pair of shoes.

Global corporations such as Adidas (ADS.XE) and one of Adidas' main suppliers, the giant Hong Kong-based shoe manufacturer Yue Yuen Industrial Holdings LTD. (0551.HK), have fought hard to end the duties.

The commission's proposal will be discussed at a meeting of E.U. trade experts in October or November and must be approved by the European Council. If the duties are cleared they will come into force at the beginning of January 2010.

   -By Matthew Dalton, Dow Jones Newswires; +32 2 741 1487; matthew.dalton@dowjones.com