Eu Verdict In Dumping Case Likely To Go Against India

After weeks of frantic lobbying in capitals across Europe, officials say that the anti-dumping investigation is still hanging in the balance despite an advisory committee ruling in India's favour. We are 60 per cent sure that the decision will go our way, says an official at the Indian embassy in Brussels.

A majority of European countries voted against imposing duties on imports of cotton unbleached fabric from India at the anti-dumping advisory committee meeting recently. Ten countries are believed to have voted against imposing duties. Five countries including France and Portugal are backing the imposition of duties.

Under new procedural rules, European Commission officials can ignore the recommendations of the advisory committee. The final decision will be taken by European Commissioner Leon Brittan.

 

Indian officials say there are strong pressures from the cotton textile industry in countries like France and Portugal to stem the flow of imports from Third World countries.

If duties are being imposed on India, the decision will have to be announced by the first week of November to comply with European Commission procedural rules.

Also, if the commissioner does decide to impose duties it will be one of the first instances when he has gone against the recommendations of the advisory committee.

More than 130 Indian companies export cotton unbleached fabric to the European Union (EU). Five other countries, including China, Pakistan, Indonesia, Turkey and Egypt are also being investigated by the European Commission's anti-dumping cell.

Countries found guilty of dumping will face anti-dumping duties. Indian exports of unbleached cotton fabric to the EU are reckoned to be worth Rs 600 crore.

The EU inquiry into cotton unbleached fabric is one of the largest anti-dumping inquiries to be carried out this year.