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)