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)