Tue, 12 Sep 2000

PSF producers take EU row to government

JAKARTA (JP): Makers of polyester staple fiber (PSF) products have called on the government to intervene after the European Union and Turkey imposed antidumping duties on their products.

The Association of Indonesian Synthetic Fiber Makers (APSyFI) in a statement, proposed that the row be discussed at ministerial levels with the European Commission and Turkish government.

Secretary-general Risa Bhinekawati said the association would consider filing a complaint with the World Trade Organization's Council of Trade in Goods Committee on Antidumping Practices if the government lobby failed to roll back the duties.

The General Council of the European Commission in July imposed antidumping duties ranging from 8.4 percent to 15.8 percent against Indonesian PSF, an important raw material for textiles. The Commission has since imposed additional countervailing duties of up to 10 percent for alleged subsidies.

The duties imposed are effective for five years.

"The imposition will render Indonesian PSF producers uncompetitive in European markets," the association said, adding that the duties would be damaging to its members.

The association said the European Commission started an antidumping proceeding against Indonesia, Australia and Thailand in April last year following a petition by the International Rayon and Synthetic Fibers Committee (CIRFS).

The association said it has briefly informed Minister of Industry and Trade Luhut B. Panjaitan the facts of the row with the European Union and Turkey.

""We are very grateful for the government's initiative to conduct bilateral negotiations with the Turkish government over the imposition of antidumping duties," it said, noting a planned bilateral consultation in Ankara on Sept. 21.

The Turkish government has imposed definitive dumping duties on Indonesian PSF producing companies, including 6.2 percent on PT Indorama, 29.5 percent on PT Polysindo Eka Perkasa and 37.4 percent on PT Silindafin and PT Tifico. (02)