EU likely to lift anti-dumping duty from Pakistan's bed linen

[Naveed Yaseen]

ANWAR KHAN
KARACHI (February 14 2009): European Union (EU) is likely to lift the anti-dumping duty on Pakistan's cotton bed linen (cotton type) from March 5 this year, which it had imposed after finding dumped imports of the product in its markets in 2004.

Well-placed sources in Trade Development Authority of Pakistan (TDAP) told Business Recorder that EU had imposed a definitive anti-dumping duty on imports of bed linen originating in Pakistan in line with the council regulations (EC) No 384/96 on March 2, 2004.

The date of anti-dumping duty is expiring on March 5 this year, which is expected to take place, as there are no such objections the EU has so far raised, they said. When contacted the advisor to Chief Minister Sindh on Investment Zubair Motiwala said there are hopes that the duty would on Pakistani bed-linen products would be removed. He said that if the duty is removed the annual exports of home-textile products would increase by some $400-500 million to EU.

He was of the view that EU has erected non-tariff barriers to impede Pakistani products to its markets like the countervailing duty, which is unjustified. He elaborated that the EU had done this to protect its local industries producing the same products from injuries and carried out an audit on every company's product retail price.

Consequently it slapped different scales of penalties on those Pakistani exporting units which it found involved in dumping of products, he added. Motiwala pointed out that import duty is scaling between 13 per cent and 17 per cent in the EU markets, the additional duty from 1 per cent to 13 per cent was a penalty for dumping of the products, which is now likely to be removed from March 5.

The only country of the region Bangladesh is not having such barriers for its exports in the EU because it bears a status of the least developing country (LDC), he added. TDAP sources said that the EU had invited further objections prior to expiry of the date, but so far none of the members of EU has raised any objections to have the EU review its decision.

The EU undertook proceeding on a complaint lodged in November 2002 by the committee of the cotton and allied textile industries of the European Communities on behalf of producers representing a major proportion of the total community production of cotton-type bed linen.

It contained prima facie evidence of dumping of the said product and material injury resulting therefrom, which was considered sufficient to justify the initiation of an anti-dumping proceeding, they said as quoting the EU report. Motiwala said that difference in retail price of the same product in its originating country and the EU markets could not be held justifiable for imposing such harsh duties.

http://www.brecorder.com/index.php?id=887883