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Efficiency is the answer
The dispute over newsprint supplies from abroad and imposition of anti-dumping duty raises certain basic issues of dealing with imports of essential inputs and generally goods which India is exporting in a big way. SAIL has complained of dumping of steel by its overseas rivals and there are likewise complaints by the European Commission on dumping against Indian suppliers of certain goods. Dumping is one activity that is open to tactical use in the global arena and WTO is already having problems deciding who is right or wrong. The situation is going to get more complex in the coming years when the free trade mechanism that the WTO is required to promote and maintain is sought to be manipulated to each other's advantage by the buyers and sellers in different countries. In regard to newsprint, the main bulk user, the newspaper industry, stands to gain in terms of cost, if not always quality when imports are allowed freely. With duty cuts alround consistent with the commitments given under the Uruguay round of global trade negotiations, domestic suppliers not only of newsprint but also other goods obviously have to reduce costs sharply without compromising on quality. For they cannot get way with complaints of dumping just because cheaper imports are taking away their customers. It has been proved that the producers within are cost as well as quality inefficient. While in the past they could get away because of the high import duty regime, the situation has changed dramatically with the mandatory reduction of customary duties on all commodities. The complaint against dumping will no longer stand the test with the regime of free trade. The producers of newsprint as well as several other inputs should realise that they have little room for tactical manoeuvre with WTO having to curb protectionism of any kind. While there will be difficulties in resolving disputes over dumping, WTO can be depended upon to ensure that no country will be able to get way with anti-dumping measures against suppliers from abroad on the one hand and escape the impact of similar measures in respect of its exporters on the other. On newsprint and other goods the provision for an anti-dumping duly is not to be viewed as a protectionist measure. It is only intended to safeguard against exploitative trading by monopolistic or oligopolistic suppliers.
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