KARACHI, Feb 14: The European Commission (EC) has initiated interim review of the anti-dumping measures on imports of cotton-type bedlinen from India, trade sources in Karachi said.

The anti-dumping duty on imports of bedlinen from India was suspended on August 14, 2001, and the suspension period was due to expire on Thursday, February 14, 2002.

The EC on June 12, 1997, imposed a provisional anti-dumping duty on imports of cotton-type bedlinen from Egypt, India and Pakistan.

After this development the Indian government approached the appellate body, which in its finding pointed out some basic miscalculation and directed the EC to review its decision. But the commission took the matter to the Dispute Settlement Body of the WTO, that too in its March 2001 ruling upheld the appellate body’s ruling.

On the other hand, Pakistan, who never took the matter to any forum and preferred to stay away from litigation, was recently awarded by the EC by terminating 6.4 per cent anti-dumping duty on bedlinen imports.

According to the official journal of the European Communities, a partial interim review against Indian imports is being initiated on the request lodged by the Committee of the Cotton and Allied Textile Industries of the European Union (Eurocoton), a representative body of textile producers.

In order to justify its review petition the Eurocoton has provided evidence stating that the circumstances with regard to dumping have changed significantly. The producers body’s allegation of increased dumping is based on a comparison of a constructed normal value with the export prices of the product concerned to the European community.

After consulting the Advisory Committee, sufficient evidence exists to justify the initiation of a partial interim review. The EC is initiating a review in accordance with Article 11(3) of the basic regulation.

During the review the application of the anti-dumping duty ranging from 12 to 18 per cent on bedlinen imports from India shall remain suspended in pursuant to Article 2 of the amended regulation.

As a result of this the zero duty on textile export to European Union, the Indian team is presently negotiating with EC, once agreed, would not be applicable on bedlinen exports.

This development is going to immensely benefit Pakistan exporters of bedlinen to European market who would now be having an edge over their Indian counterparts.

However, the chairman PBEA Shabir Ahmed told Dawn that undoubtedly this is going to give us a lead over Indian exports but the rupee appreciation up to 12 per cent since Sept 11, has already eroded this margin.