Indonesia protests Indian antidumping move

JAKARTA (JP): Indonesia will lodge a formal protest to the World Trade Organization (WTO) against India's move to impose antidumping duties on Indonesian polyester fiber (POY) products.

The Association of Indonesian Synthetic Fiber Producers (APSyFI) secretary-general Risa Bhinekawati said here on Tuesday that India's decision to impose a temporary antidumping duty of between US$0.327 and $0.441 per kilogram had been taken in contravention of WTO regulations.

She said, however, that India had yet to send an official notification to the Indonesian government of its decision.

"The information was obtained from an article in a Bombay newspaper, and a customs notification sent in by one of APSyFI's customers in India on April 12," Risa said in a statement.

She claimed that India had unilaterally imposed the duty without considering the arguments put forward by Indonesia, as well as Taiwan, and Thailand --- the other two countries on whose products the duty was imposed.

"After the public hearing in India on Jan. 23 -- which was attended by representatives from the (Indonesian) Ministry of Trade and Industry, APSyFI, as well as those from Taiwan and Thailand -- India should have responded to the objections raised by the three countries," Risa said.

Furthermore, India had not given enough time for Indonesia to respond to the allegations contained in its letter dated Nov. 10, 2000.

"(The letter) was only received by the Indonesian producers between Nov. 27 and Dec. 12 due to postal problems in India," Risa said, adding that the Indian government had insisted on the deadline of Dec. 20.

"This is against article 6.1 of the WTO regulations where the party accused must be given a minimum of 30 days and an extension in which to respond," she said.

Efforts by Indonesia to clarify the matter, both through APSyFI and its commercial attache in India, had also gone unheeded by the Indian designated authority, she added, explaining that according to the WTO any dumping allegations must be proven and an investigation had to take place before the imposition of a duty.

All three countries -- Indonesia, Thailand, and Taiwan -- could prove that their exports had not caused any damage to the Indian market, and therefore the duty should be lifted, Risa said.

About 10 Indonesian POY producers will be affected by the duty, as well as exports worth US$14 million in 2000, she added. (tnt)