July 22, 2003	Tuesday	Jumadi-ul-Awwal 21, 1424

KARACHI, July 21: The European Commission (EC) is proposing 40 per cent anti-dumping duty on import of bedlinen from Pakistan. Based on the Commission’s preliminary findings a substantial underselling of bedlinen had been going on from Pakistan in EU member states, official sources disclosed on Monday.

The sources said that a preliminary comparison carried out by the Commission of export prices from Pakistan with prices charged by community (EU industry) producers indicates a dumping margin of around 40 per cent.

However, exporters told Dawn that during the verifications of five Pakistani exporters-cum-producers by EC some differences cropped up between the two sides and this may have resulted in higher punitive duty.

However, the Commission has left the issue open for discussion for a constructive solution, in accordance with Article 15 of the WTO AD Agreement, the sources added.

The final outcome of the current anti-dumping proceedings, which could not be in favour of Pakistan is being reckoned by exporters on two accounts. Firstly, the airbus issue that annoyed the EC, and secondly, the anti-dumping proceedings may have been mishandled by Pakistani officials.

The EU commitment to the minister for commerce Humayun Akhtar Khan during his visit to Brussels in January this year of releasing 2000 tons out of special flexibility quota of 2002, is also not being honoured which indicates that there are some serious problems confronting both the sides.

Exporters say that the EU for the last nine years had been consistently giving 4000 tons of special flexibility quota but for the first time last year it held back the facility. Furthermore, issues related to over-shipment made last year are also presently causing some difficultly between both sides.

Above all there had been growing concern and resentment among exporters over the ability and capacity of the current official team dealing with trade and export related matters. “We do not doubt the ability of this team in their respective fields, but can they deliver in such technical areas like quotas, anti-dumping issues or WTO related matters, a leading exporter asked.

These issues have been raised by leading exporters at different forums and also shared their views with the commerce minister but so far no changes have been made to bring in a team which could better understand trade related issues, another exporter said.