India gains ground against EC levy

BONN, July 18: In a major blow to the anti-dumping duty lobby, India and five other nations have won the support of the majority of the 1...

BONN, July 18: In a major blow to the anti-dumping duty lobby, India and five other nations have won the support of the majority of the 15-member European Union EU in their fight against imposition of temporary anti-dumping duties on export of unbleached cotton fabric to Europe.

Eight states have complained to the EU council about the European Commission8217;s EC decision to slap provisional anti-dumping duties of up to 22.7 per cent on unbleached cotton fabrics UCF originating from India, Pakistan, China, Egypt, Turkey and Indonesia, official sources in Brussels said.

In a draft declaration to the EU council, Austria, Denmark, Finland, Germany, Ireland, the Netherlands, Sweden and the UK have said the EC8217;s decision of March 25 was against the quot;will of a clear majorityquot; of member states.

In a hard-hitting joint declaration, they said the EC had made a quot;regrettable decisionquot; in disregarding the views of the anti-dumping advisory committee and imposing temporary duties, which could lead to doubtfulconsequences for the community8217;s textile industry.

Italy, Spain, Portugal and France, however, endorsed the EC8217;s decision, while Belgium, Greece and Luxembourg are yet to take a final stand on the issue.

An estimated 130 Indian companies export UCF to the EU. Since almost 90 per cent of the exports of cotton fabrics from India is in unbleached form, the action of the EC threatens to have a crippling effect on the country8217;s exports. Britain was especially outspoken about the duties saying they would wipe out thousands of jobs in the country.

However, Italy, Spain, Portugal and France complimented the EC for carrying out the procedure in an excellent manner.

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quot;The commission8217;s investigation has virtually confirmed the existence of significant dumping margins that cause injury to the European community industry and of a community interest in the introduction of anti-dumping measures,quot; according to a separate declaration issued by these states in Brussels.

The joint declaration by the majority statesrecalled that during consultations in early March, nine member states had opposed the provisional measures, five supported the duties and one abstained. quot;A previous investigation was terminated in May 1997 when a proposal for definitive anti-dumping duties was rejected by member states,quot; it said.