In the case of bed linen exported to the European Union, India has been able to succeed in establishing a panel under the World Trade Organisation (WTO) auspices to enable it to contest the EU's move to impose anti-dumping duties on the product.

The European Commission's proposal to levy definitive anti-dumping duties on unbleached cotton fabric imported from India has already been turned down by the Advisory council comprising foreign ministers of the EU member-states.

The WTO agreement on anti-dumping practices regulates anti-dumping actions of the member-countries against their trading partners.

Noting a fall in the international prices of skimmed milk powder during 1999-2000, the government swung into action and successfully re-negotiated with WTO the bound rate for the product from the existing zero per cent to 60 per cent. The re-negotiated agreement which also covered imports of whole milk powder contains a provision for allowing 10,000 tonnes only of the two products annually as a tariff rate quota at a concessional duty of 15 per cent. Both these products are being heavily subsidied in the US and EU and the domestic manufacturers had represented to the directorate general of anti-dumping and allied duties set up in the commerce ministry to impose anti-dumping duties on them.

The representations had been made by Dynamix Dairy Industries Ltd, National Cooperative Dairy Federation of India Ltd and National Dairy Development Board. The directorate, however, found that the representations were not fully documented in the prescribed proforma to establish prima facie evidence of dumping and a casual link between the dumping of the imported product and injury to the domestic industry. They were therefore told to file petitions in accordance with the rules.

The butter oil imports increased from Rs 20.60 crore in 1997-98 to Rs 28.58 crore in 1998-99 and to Rs 32.05 crore in 1999-2000, while those of skimmed milk powder rose from Rs 4.12 crore to Rs. 8.59 crore to Rs 96.00 crore in this period.