ISLAMABAD, Feb 2: The government has directed the Pakistani mission based in Geneva to start formal consultation with Egyptian mission for reviewing the levy of 29 per cent anti-dumping duty on import of matches before filing a case in the Dispute Settlement Body of the WTO.
An official in the commerce ministry told Dawn on Wednesday that the Pakistani mission has been directed to pursue the case initially at bilateral level with Egyptian mission to resolve it at the earliest.
In case of failure, the official said that formal case will be filed in the DSB against the decision of the Egyptian Investigation Authority (EIA) for levying 29 per cent duty on import of matches from Islamabad.
According to the official, the Board of Administrators of Export Development Fund (EDF) has already agreed that EDF would pick up 50 per cent cost of the lawyers to be engaged in WTO for the purpose.
Egypt has imposed 29 per cent anti-dumping duty on Khyber Match Factory (Pvt) Ltd and all other exporters from Pakistan excluding Mohsin Match Factory (Pvt) Ltd. on which 26 per cent duty was imposed.
The issue of anti dumping duty on Pakistan matches was raised in the month of August 2002 on a complaint made by M/s Nile Match & Egyptian Match Co. to the Egyptian Investigating Authority (EIA).
Both the Egyptian companies in their complaint alleged that dumped imports of matches from Pakistan are causing material injury to the Egyptian match industry.
Exports of matches to Egypt account for approximately $5 million and match industry is the only export-oriented industry of NWFP and which employees around 5000 workers. Such anti-dumping action could also affect the jobs of hundreds of agriculturalist and farmers, who provide poplar wood to the match industry.
