EU anti-dumping duty termed disastrous for textile industry

09 Feb, 2004

The imposition of anti-dumping duty on Pakistani bed-linen by European Union (EU) would result in disaster for the Pakistan textile industry and if appropriate measures are not taken in this regard the country's exports would face acute crisis, said Hussain Ahmed Ozgen, President of Rawalpindi Chamber of Commerce and Industry (RCCI), here on Sunday.
Talking to Business Recorder on the issue raised by textile exporters for going into litigation against the EU decision, he said that exporters of textile products have decided to challenge in the World Trade Organisation (WTO) and seek immediate removal of duty against Pakistan's product.
He said that the businessmen are discussing ways and means to reverse this European Union (EU) decision and have decided to take up the case to World Trade Organisation (WTO). Pakistan, he said, was likely to lose revenue of more than 500 million dollars.

Ozgen said that the decision of the European Union would give great advantage to Indian exporters despite the fact Pakistani textile products are of far better quality than other countries.
He said that though Pakistan government is not party, it had lobbied extensively in recent months against the anti-dumping duty.
Rawalpindi Chamber of Commerce and Industry (RCCI) chief said that Pakistani exporters are more and more frequent targets of AD investigations.
The European Union's repeated imposition of anti dumping duty on bed-linen from Pakistan is clear indications of biased attitude of EC towards Pakistan, he said, and added that exporters in Pakistan perhaps do not have the infrastructure to be able to effectively use these measures to protect the domestic industry from anti-dumping duty.
He said that the use of frivolous anti-dumping litigation is emerging as a tool for developed economies to impose tariff barriers by making false cases in sectors like textiles where they are unable to compete.
He demanded imposition of stringent penalties on the countries that impose false protective anti-dumping duties on exporters into their markets.
"Since currently there is no such penalty, countries affected by foreign competition are encouraged," he said.

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