G Devarajan, chairman, Cotton Textiles Export Promotion Council, has said that Indian textile exports are facing tough measures like anti-dumping duty imposed by the European Union. In the last few years, Indian exporters, especially cotton fabrics and bed linen, have been repeatedly targeted by the European Union by way of anti-dumping action.
He added that in the case of cotton fabrics where a third, back-to-back case has been mitigated recently, the present proceeding on bed linen is the second in the series.
Both the items have been targeted for anti-dumping investigation since 1994 .
In fact, the present case on cotton fabrics, initiated on July 11,1997, will continue up to 15 months i.e. October 10,1998, and will result either in the confirmation of definitive duties or the termination of the proceeding during this period. Cotton fabrics, thus, would effectively have been under investigation for over 4 years and 9 months.
Devarajan revealed that exports of cotton fabrics and bed linen to the European Union are under quota restrictions which have been negotiated through bilateral discussions, and have also been notified to the World Trade Organisation (WTO). India thus has secured market access for these items up to the year 2004 after which year these quotas will be abolished.
He alleged that by seeking to impose additional duties in the form of anti-dumping charges over and above the normal rate of duty, the developed countries are reinforcing the non-tariff barriers in the form of quotas by erecting high tariff walls.
Given this trend in international trade, it is not clear how member-states of the European Union can accuse India of maintaining quantitative restrictions on imports of textiles along with high level of tariffs.
In fact, in the case of bed linen, for instance, it may be pointed out that quantitative restrictions are proposed to be removed by India w.e.f.January 1,1998 and tariffs bound at 35 per cent in the year 1999. Compared to the position of the EU, the Indian position, in fact, is more favourable to promoting world trade.
Devarajan has requested the Indian government to intervene at the highest political levels to ensure that the present proceedings are withdrawn by the EU.
