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To closely monitor entry of goods into state

Maha govt to launch joint effort with Centre to counter anti-dumping actions

Reena Mital - Mumbai

With anti-dumping, anti-subsidy, and such other investigations increasing steadily, both on India’s exports and imports, the Maharashtra government has decided to coordinate closely with the central government to monitor the trends, and work towards achieving free trade, in a manner that does not cause injury to the domestic industry.

Realising the need for a coordinated approach, the Maharashtra government has decided to join hands with the Centre for countering the increasing number of anti-dumping and anti-subsidy investigations against India’s exports, while at the same time, closely monitoring the entry of goods into the state, to be in a position to respond correctly and in time, against any dumping onslaught by foreign countries.

According to Mr V S Dhumal, principal secretary, industry ministry, government of Maharashtra, “There are three major entry points in Maharashtra - JNPT, BPT and the international airport in Mumbai. The Union government has been closely monitoring the entry of goods into the country, and the trends thereof. A number of sensitive items have also been identified. The Maharashtra government, alongwith the Centre could monitor the entry of such goods into the state, which is important to know the trends in such goods, which in turn will help in timely and correct responses, either for initiating or responding to international trade investigations. This is important to prevent any damage that stems from unfair trade.” He further stated that the Maharashtra government will have to review the various schemes being offered to its industries, to ensure that these do not come under the scrutiny of international agencies.

Speaking at a recent seminar on ‘Anti-dumping and countervailing rules, agreement and practices’ organised by CHEMEXCIL, Mr L V Saptharishi, designated authority and additional secretary, ministry of commerce, said, “Trade distortions and trade investigations have become the order of the day due to the practice of free but unfair trade. However, there is no reason why the Indian industry should follow an inward looking policy. With tariffs falling to low levels, market access for Indian exporters is increasing, and there are still untapped markets for Indian goods. These opportunities will offset any hassles that the industry may face on account of rising imports, or anti-dumping investigations in other countries. Greater market access is itself a signal for such investigations by foreign governments and agencies. The industry will need to address these, by strengthening itself to become an important player in the global arena.”

He further stated that systems already existed to fight such cases at the WTO, and India has won a number of such cases. Besides, India, alongwith a number of other developing countries has been taking up implementation-related issues at the WTO.

Meanwhile, the Directorate General of Anti-Dumping and Allied Duties, in its studies, has found a mixed trend in exports and imports of products that have been subjected to anti-dumping duties by India. “The decline in imports seems to be significant in case of acrylic fibre, whereas exports have shown an upward trend. However, in case of a number of other products, only a marginal decrease in imports has been witnessed, but exports have definitely gone up in most cases, after imposition of the anti-dumping duties.” Another observation made by the DGAD is that the developing countries’ retaliation to the anti-dumping cases initiated by developed countries is quite high.

In 2002-03, India initiated 30 anti-dumping cases, preliminary findings have been issued in 17 cases, there are 12 cases under investigation for preliminary findings, and in one case, the final findings have been issued.

From 1992, India has initiated a total of 153 cases, of which in 117 cases final findings have been issued, preliminary findings have been issued in 18 cases, 12 cases are under investigation for preliminary findings, and proceedings were initiated in six cases, which were eventually closed.

As against this, since 1980-2003, 82 anti-dumping cases, and 32 anti-subsidy cases have been initiated against India’s exports. EU has initiated the largest number of investigations - 27 anti-dumping, and 14 anti-subsidy cases against exports from India. Textiles and articles thereof have attracted 16 anti-dumping actions, and four anti-subsidy investigations.