ANTI DUMPING MEASURES BEING USED EFFECTIVELY TO SAFEGUARD DOMESTIC
INDUSTRY IN POST-QR ERA

JAITLEY ADDRESSES NATIONAL SEMINAR ON ANTI-DUMPING AND SUBSIDY ISSUES

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Shri Arun Jaitley, Union Minister for Commerce & Industry and Law & Justice, has said that India has taken effective anti-dumping measures to safeguard the interests of domestic industry in the post-QR era. To this end, the anti-dumping investigation process in the country has been
greatly streamlined. Addressing the a National Seminar on Anti-Dumping and Subsidy Issues organised by the Directorate General of Anti-Dumping and Allied Duties (DGAD), Ministry of Commerce & Industry in collaboration with the Federation of Indian Chambers of Commerce &
Industry (FICCI) here today, Shri Jaitley said that in the backdrop of economic liberalisation and the fact that domestic industry is currently in the state of adjusting itself to a QR-free regime, there was need to be vigilant as the sheer size of the domestic market could be a temptation for some exporting countries to indulge in unfair trade practices and "we will, therefore, need the availability of trade defence instruments with the necessary flexibility to protect our industry from injurious dumping, subsidisation or from a sudden surge in imports".

Shri L.V. Saptharishi, Additional Secretary and Director General of Anti-Dumping and Allied Duties (DGAD), Ministry of Commerce & Industry, Dr. Amit Mitra, Secretary General, FICCI and Shri Y.K. Modi, Senior Vice President of FICCI participated in the one-day Seminar, which was attended by representatives of domestic industry engaged in anti-dumping, user industry, exporter's representatives, government counsels on the panel of DGAD, lawyers and consultants engaged in the field of anti-dumping and representatives of EPCs/Commodity Boards.

Shri Jaitley also underlined that the anti-dumping authorities in India had been working in a transparent manner adhering to all the substantive and procedural requirements, as reflected in the fact that most of the findings have been upheld and sustained by the decisions of the appellate courts. Pointing out that anti-dumping measures should be remedial rather than punitive, the Minister stated that the domestic industry should, therefore, not only look to these measures but also take appropriate steps to become globally competitive.

Referring to the ongoing negotiations on Rules in the WTO, Shri Jaitley said that the approach would have to be such as to best safeguard the national interests. The negotiations underway as provided in the Doha mandate aim at clarifying and improving the disciplines under the Anti-Dumping Agreement. Like other members, India too had made proposals on implementation-related issues in respect of the Anti-Dumping Agreement such as back to back anti-dumping investigation; problem in initiating anti-dumping investigations where domestic industry consists of small-scale or "unorganised" sector producers; issues relating to dumping margins; need to have rules for determination of injury margin; greater clarity regarding the injury factors referred to in Articles 3.4 and 3.5 of the Agreement; issues relating to price undertakings; and operationalisation of the special & differential treatment provisions of the Anti-Dumping Agreement, he said.

Flagging the activities of the DGAD, Shri Saptharishi highlighted the following:

Anti-Dumping & Allied Duties

 158 anti-dumping cases have been initiated by the Director General of Anti-Dumping & Allied Duties since 1992. Out of these cases, final findings have been issued in 124 cases and preliminary findings issued in 19 cases till 31.7.2003.

 The major product categories on which Anti-dumping duty has been levied are Chemicals & Petrochemicals, Pharmaceuticals, Fibres/ Yarns, Steel & other Metals and Consumer Goods.

 Of the 158 cases initiated by the DGAD so far, 56 appeals have been filed before the CEGAT. Out of these, in 30 cases CEGAT has upheld the decision of the Designated Authority and in 9 cases it has been partially modified. Only in 3 cases, the recommendations of DA have been quashed; of which in two cases DA has already filed an appeal before the Supreme Court.

 Similarly in the Supreme Court, of the 10 cases that were admitted, judgements have been passed in four and in all the four cases, the Supreme Court has upheld the findings of the DA.

 So far as the WTO Dispute Settlement Mechanism is concerned, not a single decision of Designated Authority has been referred to it.

 Besides expediting and streamlining the procedure of investigation, the DGAD also initiated various measures for dissemination of information on the anti-dumping laws, practices and procedures in the country. The Port Offices of DGFT were also utilised as Facilitation
Points for the domestic industry to provide information on anti-dumping laws, procedures, specially concerning the filing of petitions.

Anti-Dumping & Subsidy cases against India

 As per available information, 84 Anti-dumping cases and 32 Subsidy cases have been initiated against exports from India.

 Out of the 84 Anti-Dumping cases initiated against exports from India, highest number of cases initiated continues to be by EU (33%), followed by USA (17%), South Africa (13%), Indonesia (7%), Canada (6%), Brazil (5%). Argentina, Australia, Egypt, Mexico, Turkey, Thailand and
Republic of Trinidad & Tobago have also initiated cases but individually are accounting for a share of about 1.5% each cumulating to 19%.

 Out of the 32 Anti Subsidy cases initiated against India, EU accounts for (44%) followed by USA and South Africa (19% each) and Canada (16%) and Brazil (3%).