950804

Govt to approach

Tokyo for end to

anti-dumping duties

ANWAR RAJANI

KARACHI: The government will soon approach the Japanese authorities for cancellation of its decision to impose anti-dumping duties on the import of yarn from Pakistan.

According to official sources, the Pakistan Government, among other things, will raise the plea that the cotton situation in Pakistan had undergone a dramatic change and the yarn prices had touched an all time peak. Therefore, there is no need of exporting yarn to the Japanese market at dumping prices.

Sources said that during the Japanese team's visit to Pakistan in November last all cooperation was extended to them to satisfy their requirements of investigation. However, at policy level, it was impressed upon the Japanese that in the absence of any evidence of injury to the Japanese industry there was no need for continuing the investigations.

At the initial stage, Pakistan's assessment was that the Japanese authorities were passing through the procedural formalities under their laws. However, anti-dumping allegations took a serious turn all of a sudden, and the Japanese authorities ultimately imposed punitive duties on imports from Pakistan.

It may be mentioned here that Japan had initiated anti-dumping investigations in February 1994, on the import of cotton yarn from Pakistan, questionaire forms were duly filled in, as required, by 17 Pakistani companies to satisfy the Japanese authorities.

During November last, a Japanese team came to Pakistan to make "on-the-spot investigations" in the light of the information provided in the questionaire.

Japan has remained No. 1 trading partner of Pakistan so far. However, Pakistan has a low share of about 0.4 percent in Japan's total trade, and running a persistent trade deficit due mainly to heavy imports of Japanese machinery, motor vehicles, iron and steel manufactures etc.

Pakistan's exports continue to consist of low value added cotton based products. Exports from here include cotton fabrics, cotton yarn, textile make-ups, leather, toys, sports goods, carpets etc.

Japan maintains a quota on leather whereby tariff becomes applicable after a certain quantitative ceiling. Islamabad also intends to approach the Japanese government to remove this quantitatives ceiling, as they have reportedly done in the case of some other exporting countries as a special dispensation.

Besides, Japan has partially opened its market for the import of rice. Pakistan has not been included in the list of source countries. In this behalf also, Japan will be asked to provide a special quota for rice imports from Pakistan.