Textile group protests EU dumping accusation

Textile group protests EU dumping accusation

JAKARTA (JP): The Indonesian Textile Association (API) has
lodged a formal protest against the European Union's proposal to
impose antidumping duties on imports of unbleached cotton fabrics
from Indonesia and five other countries.

API's secretary-general Irwandy Muslim Amin said yesterday the
association considered the accusation to be groundless.

"API sticks to its demand that EU withdraw its dumping
accusation and remove the provisional antidumping duties because
it is baseless," Irwandy said in a statement.

The proposal, expected to be discussed by the European
Commission today, would also seek definitive antidumping duties
against China, Egypt, India, Pakistan and Turkey.

Irwandy said it was the third dumping accusation against
Indonesia since 1996. The previous two were dropped because there
was no supporting evidence.

The European Commission in March imposed provisional
antidumping duties averaging 15 percent on unbleached cotton
imports from China, Egypt, India, Indonesia, Pakistan and Turkey.
Turkey has since been spared the duties.

The commission agreed on the following duties for each of the
countries: China (15.7 percent); Egypt (20.6 percent); India
(between 13.2 percent and 16.9 percent); Indonesia (between 13.5
percent and 31.7 percent); Pakistan (between 19.2 percent and
32.5 percent) and Turkey (between 10.9 percent and 14.2 percent).

On July 16, the commission imposed new antidumping duties
between 11.8 percent and 13.7 percent on Indonesian unbleached
cotton imports.

The commission began an antidumping investigation in 1996 on
gray cotton fabric imports from the six countries. It reopened
the case in July last year.

Both investigations were carried out based on complaints by
Eurocotton, which represents European cotton and textile
industries. Eurocotton alleged the countries sold their cotton in
Europe at unfairly low prices.

The provisional duties angered the targeted countries and
several EU states.

Eight EU governments, including Britain and Germany, have said
the commission was wrong to overrule the majority of EU states
which did not want duties imposed on the cotton imports.

Under EU antidumping rules, the commission may, of its own
accord, impose provisional antidumping duties for six months on
goods it concludes are sold at unfairly low prices in the EU.

Irwandy said API considered the European Union committed
unfair trade practices by imposing the antidumping duties, which
were aimed at hampering exports from other countries, especially
Indonesia.

"API is taking the problem seriously and we will bring it to
the World Trade Organization if the European Commission refuses
to lift the antidumping duties. We are still waiting for the
commission's answer."

Indonesia recorded US$6.2 billion from the export of textile
and textile products last year, but earnings are expected to drop
by about 35 percent to $4 billion this year because of the
currency crisis, which has led to the closure of many factories.
(gis)