950807

Pakistan to challenge

Japan's anti-dumping

levy in WTO: Mukhtar

IKRAMUL HAQ

ISLAMABAD: Pakistan has decided to approach the anti-dumping committee of World Trade Organization (WTO) against the levy of anti-dumping duty on yarn exports by Japan.

Addressing a press conference on Monday Commerce Minister Ahmad Mukhtar said that the matter will be referred to the Geneva-based committee as soon as the translation of the Japanese orders is available.

In the meantime, Pakistan's Ambassador in Geneva has been alerted to press the issue with the newly-created World Trade Organization which has replaced Gatt.

Pakistan's textile negotiator Nasim Qureshi, who is also Joint Secretary, Commerce Ministry, elaborated that the appeal will be dealt with by the anti-dumping committee of Gatt Tokyo Round, as the duty has been levied on exports which took place in 92 and 93.

Earlier in the day, the Economic Coordination Committee of the Cabinet (ECC) which met here, with the Prime Minister in the chair, also directed commerce ministry to make a reference to the committee in Geneva, on anti-dumping practices.

The ECC further directed that opinion of the committee should also be sought on the position of new mills which should be entitled to export yarn without duty.

Ahmed Mukhtar told newsmen that the anti-dumping duty is from two percent to 7.9 percent, and 9.9 percent for those mills which had not responded to the Japanese call for levying the duty. The duty, valid for five years, is on yarn counts of 20 to 21, used for towels.

Mukhtar, who was assisted by APTMA Chairman Anwar Tata, explained that the Japanese decision was unilateral and without going through the prescribed process for such a penalty.

CASE IS STRONG

Mukhtar said that Pakistan has strong case because the options available to the Japanese government under the anti-dumping code were not adopted in order of priority. The first option is to make a comparison of domestic market price which in ths case was much higher. The second option was to make a comparison of export price to other countries. Here, too, the price in Japan was on the higher side.

Refuting the allegation that Pakistan left the important issue to junior level of bureaucracy, the commerce secretary and the minister told the press that the government tried to take up the issue with Japanese Minister of International Trade and Industry Hashimoto who visited Pakistan early this year but the Japanese urged otherwise as it would politicise the issue.

It was suggested to the Japanese that a special envoy of the Prime Minister would like to visit Japan in this connection, but the request was not acceeded to. Even the proposal for the Commerce Minister to go to Japan was not welcome due to certain pre-occupations.

Ahmed Mukhtar held that the Japanese decision was not based on justice and he was sure it would be reversed in Geneva.

Asked how soon Geneva could decide the issue, Mukhtar said that the first stage is of conciliation for which 30 days are needed. If the issue is undecided, it is referred to an independent panel which takes 90 days to decide the case.