Font Size

- Aa +

Wed 12 Jan 2011 07:17 PM

Font Size

- Aa +

Gulf mulls legal action against India in dumping row

GPCA boss says Indian’s anti-dumping restrictions go against World Trade policy

Gulf mulls legal action against India in dumping row
India imposed dumping duties on Saudi Arabia and Oman in

The
Gulf Petrochemicals and Chemicals Association will take legal action if
diplomatic efforts to remove what they say are India’s unlawful dumping duties
on imports of polypropylene from Saudi Arabia and Oman are not lifted.

“It’s
the step we will take if the diplomatic efforts are blocked,” GPCA’s secretary
general, Dr Abdulwahab Al Sadoun, told Arabian Business. “This is likely if we
don’t reach a solution. The next step will be taking this to the World Trade Organisation’s (WTO) dispute
committee.”

India last year slapped a fresh round of dumping duties on plastic imports
from Saudi Arabia and Oman, after its ministry of industry and commerce
concluded that the low costs of feedstock in the Gulf gave its
petrochemical producers an unfair cost advantage.

The 140-member GPCA argued at the time that the move was “unprecedented
and in violation of the World Trade Organisation rules and regulations,” - claims
they still stand behind.

“It’s
setting a precedent that’s a social concern to all of us – the basis that this
case was built upon is totally wrong, in our opinion, and not in line with the
regulations and bylaws of the WTO,” Al Sadoun said.

“Specifically here,
[India’s] case had been built upon cost protection that is not actual – they
used international pricing to build a costing model that isn’t correct.

“As
such the case doesn’t have foundation and doesn’t comply with the WTO. We’re
100 percent confident that if we bring this case to the WTO, the ruling will be
in our favour.”

India and China first imposed tariffs on polypropylene
imports from Saudi Arabia and Oman in 2009, after accusing firms of dumping
subsidised, cut-price produce on the Indian market.

Saudi Arabia, OPEC's largest exporter, has consistently argued that it has a natural advantage in
feedstock as a result of its close proximity to oil and gas resources.

Al Sadoun
said that the last few months had seen minimal economic impact on Saudi or
Oman.

“The
combined export from this region to India is still small, so it really isn’t
going to have a significant impact of the industry,” he said. "But we are
concerned about such regulations because this is not in compliance with the WTO
regulations and we’re still talking to our Indian counterparts to reach a
win-win solution.

“We’re
getting conflicting messages from the Indians. We’re optimistic that we will
reach a solution that will be in the mutual interest of the region.”

 

For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.