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Chamber's plea for strengthening anti-dumping pact

By Our Special Correspondent

NEW DELHI OCT. 15. The Associated Chambers of Commerce and Industry of India (Assocham) has stressed the need for improving the anti-dumping agreement and removal of the provisions that are trade distortionary and prone to abuse and misuse by countries which are more adept at bending and interpreting various legal clauses.

The chamber has suggested a balance between the level of detail in the WTO rules and the stringency of the standard by which the investigating authorities determination are reviewed by the WTO panels.

In this context, the chamber has recommended a seven-point strategy. It includes need for examination of the level of efficiency of domestic producers before establishing injury, lucid definition of `Like Articles' and product under investigation, specific guidelines regarding the period of investigation.

Adequate rules ought to be there to deal with various circumvention scenarios besides review of Article 15 pertaining to special and differential treatment for developing countries. There was also need for expedited review procedures and renegotiation of Article 8 relating to non-actionable subsidies.

However, the chamber has stated that though the Indian exporters have been subjected to a number of actions by other countries. India is yet to initiate any action for imposition of Countervailing Duty (CVD).

A core issue is that a subsidy should be taken into account only if it is actually received or if the exporter is entitled by the mandate to it.

A number of times a CVD is imposed on Indian exporters when the exporter actually does not receive the subsidy during the period of investigation.

Also, guidelines to calculate the benefit to the recipient of the subsidy should be made more lucid than what they currently are.

Further what is important is expedited review procedures to ensure that an exporter is not penalised for a subsidy he is no longer getting.

This should however, be based on concrete evidence by the party concerned to prove that they are no longer procuring the subsidy.

In connection with the category of non-actionable subsidies (Article 8) which has been discontinued after the expiry of five years, the Chamber said India should review all the subsidies granted by the Government and identify such of those subsidies that may qualify for inclusion in the non-actionable activities category.

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