950807

Govt urged to protect

textile industry from

anti-dumping measure

RECORDER REPORT

ISLAMABAD: Aptma chief Anwar Ahmad Tata has demanded availability of all inputs for the textile industry at the international prices to enable it to compete at the international level.

Talking to newsmen here on Monday, he said that it is the role of the government all over the world that they take all possible measures to protect their industries. The recent example was the row between the United States and Japan over the automobile industry. In line with this worldwide policy it is the responsibility of the government to provide protection to the textile industry against the anti-dumping measure by Japan.

He said the Japanese Textile Association complained to its government against the selling of Pakistani cotton yarn at cheap rates and called for anti-dumping measures. Originally, the complaint was against 188 mills but after receiving clarifications the number was brought down to 170. After thorough investigations the Japanese cleared eight of the mills of the charge of dumping while nine mills were held responsible for dumping cotton yarn and the Japanese government in a hurried decision levied the anti-dumping duty of 2.2 percent to 7.9 percent.

He said talks have been going on between the two countries for the last one year and in spite of the invitation of the Pakistan government the Japanese government has not sent either the commerce minister or the minister for finance to sort out the differences on dumping which have arisen for the first time in 40 years. He said that a number of Japanese investigating teams visited Pakistan during the last one year to investigate the exports of some 188 textile units allegedly indulging in dumping of cotton yarn. After a sample survey, the investigating teams found that only 17 of the textile units appeared to have been indulging in dumping operations. He said, Pakistan has 80 percent share of cotton yarn exports to Japanese market. He said, only two textile units in Japan complained to their government that they were suffering losses due to higher exports of cotton yarn by Pakistan. The Japanese government readily supported its two units to provide them protection.

He said that the Pakistani textile units have been mostly exporting yarn of 20 and 21 counts.

Answering a question, Anwar Ahmad Tata said that Pakistan after strenuous efforts has been able to win over 25 percent share of the world cotton yarn trade and it is not a mean achievement. In order to safeguard their industries some of the countries have been talking of anti-dumping measures and using this tool.

He said that Aptma has made constant efforts to satisfy the Japanese Textile Association that it is not indulging in dumping practice but instead of settling the issue on commercial basis politics has been brought into play and the Government of Japan has intervened, and has taken a decision in hurry.

He said Aptma has spent $20,000 on the translation of Japanese questionnaire into English to make it available to the expert on the anti-dumping laws, an Australian, who has pleaded Pakistan's case on some previous occasions successfully.

Answering a question, he said that Aptma would hold talks with Taiwan which is also proposing to impose anti-dumping levies on Pakistan. He said, at present Pakistani cotton yarn of all counts exported to Taiwan is worth $50 million. He said, since there are no diplomatic ties between Pakistan and Taiwan, the matter would be negotiated between the commercial circles of the two countries.

Answering a question, Anwar Ahmad Tata said that during the last two years 145 textile mills have closed down while two to three mills are closing down every week for want of credit, high cost of cotton, exceptionally high cost of electricity and other inputs. He said, the country has 480 textile units in all and almost one third have closed down. The industry is facing a very difficult period and the anti-dumping duties have added to their difficulties.

He said that since the issue is being taken to the Geneva Office of the WTO, the Aptma would wait for the outcome of the case before the WTO which is expected within a period of six months or so.

According to official figures, Pakistan's cotton yarn exports to Japan during 1990-91 was 134 million kgs against the global export of 501 million kgs, in 1991-92. The Japanese share of Pakistani cotton yarn exports was 165 million kgs against the global exports of 505 million kgs, in 1992-93. Cotton yarn exported to Japan stood at 143 million kgs against the global exports of Pakistani yarn amounting to 555 million kgs and in 1993-94, Pakistan's total global exports of cotton yarn were to the tune of 578 million kgs and the Japanese share was 170 million kgs. Value wise, Pakistan exported cotton yarn yarn to various countries of the world worth $1259 million and to Japan yarn worth $363 million was exported.