Anti-Dumping Meet On Wednesday

The Union government had charged the European Union of initiating several anti-dumping cases against Indian goods exports, many of which are uncalled for. Items like cotton yarn, synthetic fabrics, cotton fabrics, bed linen and magnetic diskettes have been terminated without any conclusive evidence of dumping. Free Trade Association of Europe has said the European Union's anti-dumping policy was highly protectionist and, at times, could be looked at as an unfair trade practice.

The textiles ministry has been advising the commerce ministry to seek consultations with the European Commission under Article 17.2 of the WTO anti-dumping agreement.

Further, a duty ranging between 3-20 per cent has been levied on exports of unbleached cotton grey fabrics recently. This is expected to hurt exports worth Rs 760 crore.

 

India's exports of unbleached cotton grey fabrics have gone up from Rs 478 crore in 1993 to Rs 635 in 1994. Quantity exports have gone up from 48,754 tonnes to 50,511 tonnes in the same period, but declined to 47,990 tonnes in 1995. India's share has been 15.34 per cent in 1993 and 14.57 per cent in 1994 in European Union imports.

This is the second time a complaint has been lodged against cotton fabrics. The previous case against Indian cotton fabrics and polyester fabrics was filed in January 1994 but found invalid the same year in May.

It was formally dropped earlier this year.

European Union has taken up at least 11 investigation against India. While it is difficult to quantify the value of exports hurt on account of anti-dumping investigations, sources said this has been impeding Indian exports.

Anti-dumping duties have already been imposed on two of the 10 items, said commerce ministry sources. They are oxalic acid, polyester blended yarns and polyester staple fibre.

The European Union is India's largest trading partner, accounting for 32.8 per cent of India's total imports and 25.6 per cent of exports. Two-way trade between the two countries has shown an annual growth of approximately 30 per cent.