December 5, 2003	Friday	Shawwal 10, 1424

LAHORE, Dec 4: The ongoing investigation by the European Commission into the anti-dumping case against Pakistani bedlinen exports to Europe is “violative of the spirit of the anti-dumping agreement.”

In a news release issued here on Thursday, leading businessman and WTO expert Akber Sheikh said the investigations “violated the Doha Declaration guidelines on chain investigations especially as it came on the heels of collection of anti-dumping duty by the EU for four years — an act that was held illegal by the WTO Dispute Settlement Board.

“The arbitrary use of security concerns by the investigating official to the disadvantage of the exporting company is without precedent and against all norms. The WTO Appellate Body has already ruled against the anti-dumping case launched by the EC against India following the suspension of the previously assessed anti-dumping duty, which was also held illegal by the Dispute Settlement Body,” he said.

He said: “In all fairness, the EC should suspend investigation and refrain from converting its provisional assessment into definite assessment. If it resorts to Tariff Rate Quota Mechanism, the tariff must not exceed the MFN tariff. The door must be left open to re-visit the constructive solution agreed upon in case the duty-free access granted to Pakistan under the GSP system is withdrawn for any reason. Also, in order to protect the rights of the intending exporters, it should be ensured that the duty-free quantity available under the TRQ solution is not preferentially made available to the present quota holders only and is made open to all exporters after the quota system expires in 2005.”

Mr Sheikh said without this arrangement new exporters would have a cause to question the TRQ arrangement.

He said the trade and industry of Pakistan expected the commerce minister not to compromise on the basic principles and take the case through dispute settlement mechanism if required.

“Although anti-dumping investigations are against exporting companies, it is important from tactical and strategic point of view for the ministry of commerce to be involved and to use all means available to it to make an effective case at legal as well as diplomatic level,” he said.