ISLAMABAD, Oct 1: The commerce ministry has convened a meeting of all relevant stakeholders to review the impact on Pakistan’s bedlinen exports to the European Union after its decision to cut the average anti-dumping duty from 13.1 per cent to 9.9 per cent.
Commerce Minister Humayun Akhtar Khan told Dawn on Saturday that all the eight sample companies of bedlinen and other stakeholders had been invited for the meeting next week to discuss and develop future strategy in this regard.
With the downward revision in definitive anti-dumping duty, Pakistani bedlinen would now attract customs duty at the rate of 21.9 per cent instead of earlier 25 per cent (9.9 per cent anti-dumping duty and 12 per cent normal duty earlier exempted under GSP scheme) from January 1, 2005 in the EU market.
Mr Khan said that during the meeting all the options available would be discussed prior to taking it to dispute settlement body (DSB) for consideration.
The EU investigating team had invited all sample companies to Dubai in May this year to review their accounts to determine the margin of dumping.
The minister said that during the meeting the dumping margin disclosed by the EU would be discussed at length.
Answering a question, the minister said that the companies had the right of appeal to challenge the decision of the EU.
According to sources, the EU was likely to again offer some tariff quota on reduced customs duty to Pakistan. The EU had already offered 5,000 tons quota on reduced customs duty rate on bedlinen, which the sources said was rejected by Islamabad.
Pakistan’s export of bedlinen to EU member countries was in the range of around 60,000 tons, the sources added. The sources said Pakistan once again might offer EU a voluntary price mechanism in which certain products would not be exported below the prescribed price.
The EU levied anti-dumping duty on Pakistan’s bedlinen in 1997, which was withdrawn in January 2002 as the investigation conducted into the matter did not determine the dumping element in Pakistan’s exports of bedlinen to the EU.
In December 2002, the EU again started investigation but the investigation team did not complete the process and left the country half way through without completing its job.
Pakistan’s total share in bedlinen import of the EU stood at 50,000 tons out of a total import of 200,000 tons per annum. Pakistan’s export of bedlinen has declined by more than 30 per cent to EU during the year 2004-05.
However, import of the bedlinen to EU member countries increased from India and China during the year under review. This showed that levy of anti-dumping duty was not helpful to that extent provide protection to the EU local manufacturers.