South Korea's dumping charge denied

South Korea's dumping charge denied

JAKARTA (JP): The Indonesian Textile Association (API) has
strongly denied charges of dumping fine cotton yarn in the Korean
textile market, as accused by the South Korean Trade Commission.

The association's executive director Indra Ibrahim said the
accusations that four Indonesian companies -- PT Kahatex and PT
Sunson in West Java, PT Sugih Brother in Banten, and PT
Primayudha in Central Java -- had sold their fine cotton yarn at
dumping prices were groundless.

"We will explain with comprehensive data that our selling
price in Korea is not lower than in Indonesia ... we will also
explain that our production costs are in fact lower than similar
industries in Korea," Indra was quoted as saying by Koran Tempo
daily on Friday.

Representatives from the association, along with Ministry of
Industry and Trade officials, are scheduled to attend a public
hearing in Seoul on Sunday, he said.

Indra said the dumping allegations could jeopardize
Indonesia's cotton yarn exports to South Korea, one of the top
ten export markets for Indonesian textile products.

Indonesia's export of fine cotton yarn to South Korea averages
5.2 million kilograms a year.

If the charges are proven, South Korea will impose antidumping
measures against the four companies and close its market to
Indonesian producers for five years, Indra said.

Textile exports to South Korea reached US$222.9 million in
1999, a hefty increase from 1998's $128.8 million, he said.

If Indonesia's explanation and evidence presented at the
public hearing are rejected then, one month after the hearing, a
team from the Korean Trade Commission will conduct an
investigation at the four companies' factories.

South Korea has also accused India and Pakistan of similar
practices. (tnt)