The Hindu Business Line : Peru initiates dumping probe on textile imports

THE end of quota regime in global textile and clothing products at the dawn of 2005 does not mean that India could easily capture a preponderant share of the trade in this segment as many a country is sharpening the knife, by way of WTO-compatible trade defence strategy, to slap safeguard duty on import of textile garments from low-cost and efficient suppliers.

Official sources told Business Line here that Peru has already initiated investigation for application of general safeguards on import of textile. Peru's National Institute of Fair Competition Defence and Copyright Protection (INDECOPI) through its Commission of Dumping and Subsidies Inspection has begun an investigation to impose general safeguards on import of textile garments.

The sources said INDECOPI has advanced figures citing Peru's National Superintendence of Tax Administration to bear out the fact that between 2000 and 2003, the textile manufacturing imports increased in absolute terms from 4.63 million kilos to 9.45 million kilos, representing a rise of 104 per cent.

Hence, INDECOPI found that "the high volume and low prices of such imported products have had a negative impact on the production, sale, market participation and employment, causing a terrible harm to the national production sector."

Towards the end of August 2004, INDECOPI gave a month's notice to interested parties to put forward their argument and provide information and proof in support of their claim that they are not dumping their products into Peru, causing material injury to the indigenous industry there. Sources said that under duress from the domestic business community, INDECOPI would be probing imports of textiles garments particularly from Asian countries.

In December 2003, Peru slapped transition safeguards on import of textile garments from China, which reduced the imports from China to an extent of 90 per cent.

Further, sources said, during the first five months of this year, India's exports of textile garments to Peru has come down by around 30 per cent to $0.901 million from $1.28 million in the corresponding period last year.

Hence, it is apprehended that any safeguard measures imposed on import of garments from India would further affect Indian exports to Peru in this sector.

Besides India, China, Malaysia, Indonesia and Sri Lanka are likely to be affected.

The sources said that the Indian Embassy in Peru has already apprised the Ministry of Textiles here of the impending move and efforts are under way to engage a local law firm in Peru to present New Delhi's case that its exports are not undertaken below the cost price of the products.

More Stories on : Anti-dumping | Textiles

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page