NEW DELHI, April 7: India is considering the possibility of raising a dispute in the World Trade Organisation (WTO) on the European Community's decision to impose anti-dumping duties action on unbleached cotton fabric (UCF) and bed linen imported from this country.At the same time, India is also examining the question of filing a dispute in the WTO on anti-dumping measures initiated by South Africa.
Sources say discussions are currently on between the commerce ministry and the textiles ministry on moving the WTO in the dispute with EU, and a final view is expected to emerge shortly.
India is also concerned at EC's moves imposing anti-dumping duties on stainless steel fastners and other commodities and and may approach WTO's dispute settlement body for resolving the issue.
Frequent use of anti-dumping measures by the EU has led to great dissatisfaction in the textile industry circles and this has been reflected in bilateral talks, sources say.
The Indian Cotton Mills Federation (ICMF), representingthe organised mill sector, has "deplored" the EU's decision to impose anti-dumping duties on UCF ranging from 4.9 to 16.9 per cent, notwithstanding the overwhelming majority of EU member-countries opposing such a move.
What is more, according to ICMF, UCF exports from India are already governed by quantitative restrictions and the imposition of anti-dumping duties amount to double restrictions on market access and goes counter to the progressive liberalisation of textile trade envisaged in the Agreement on Textiles and Clothing signed under WTO aegis.
India, which exports roughly Rs 700-crore worth of UCF to the EU and other countries, wants the EU to introduce an early warning system about initiation of anti-dumping investigations for the benefit of small and medium enterprises in the country.
Further, before launching these investigations, the EU must also take into account the impact of these on the Indian industry.
For instance, a mere complaint in EU about a particular product originating from adeveloping country can affect its investment decision as also trade and this cannot be treated isolation. There is also a need for "transparency" in procedures in order to remove misgivings about EU anti-dumping rules and regulations. The EU contends that the level of tradeaffected by its anti-dumping measures is just two per cent.
Between 1996 and 1998, the EU has initiated eight anti-dumping procedures involving India, whereas India has initiated five such investigations involving the EU.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
