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G. Srinivasan

NEW DELHI, May 5

THE WTO has said on May 2 in Geneva that between July 1 to December 31, 2002, 17 members initiated up to 149 anti-dumping (AD) probe against export of 43 countries. India led the largest-user league with 54 AD cases that are microscopically less than the 55 probes it set off during the corresponding semester of 2001. New Delhi has also the largest number of final measures (42) during the second semester of 2002, more than twice the number of final measures it had imposed (20) during the corresponding semester of 2001.

The Directorate General of Anti-Dumping and Allied Duty (DGAD) and the Designated Authority Mr L.V. Saptharishi is unfazed by this disclosure from world trade monitoring body as he told Business Line in an interview that the trade defense instrument is available under extant global trade rules. Here is an excerpt from the interview:

What is your reaction to the latest finding from Geneva on India being the largest user of AD measures?

Such reports keep coming from time to time. I have no comments other than stating that this only demonstrates that India is making a proper use of this instrument available to it as it is to other members under the WTO Agreement on Anti-Dumping (AAD) on efficient lines.

Does it not amount to protectionism on the part of India?

AD is an instrument for removal of price distortion and a transparent trade remedial tool and is not to be mistaken as a device for protection. Since the instrument is being made use of under the WTO umbrella, it would be unfair to allege that we are badly making use of it in a larger measure. If the instrument is not availed of, the domestic industry gets affected due to import surge and then how would you describe the situation? Would you then gleefully concede that under the liberal import regime when the domestic industry is reeling, the Government remains immune to the industry's woes? In any case, the domestic industry ought to be given relief in the QR-free regime and it would be given the necessary support and relief within the framework of Customs laws and under the WTO AAD.

Does not increased resort to AD affect and erode the export competitiveness of India?

Except in the last two or there years when the QR regime was lifted, India was never a big user of this trade defense measure. India's dynamism on the export front especially in regard to manufacturing export has neither been diluted not blunted due to AD measures when they were instituted by India or against India. What is required is alertness on the part of the domestic industry as well as export firms from abroad that the rules of the games on either are adhered to scrupulously. Again the fact that imports are registering an increase in recent months further testifies to the ground reality that AD measures of India are not directed against any one country or one particular product. It is a process, when set in motion, comes to play its own role under the rules without affecting imports/exports.

DGAD recently released its third annual report, a comprehensive compendium on the state of play in AD realm. Howe does it help all stakeholders to surmount challenges?

The report is basically structured to benefit the domestic industry and other stakeholders. The fact that it is very comprehensive in content would go to prove that the Indian authorities are totally transparent and objective in their approach to the problems plaguing the domestic industry with regard to import from other competing sources. In the process, the Indian industry is becoming mature day by to respond to face free market forces. Another advantage is that domestic industry would be in a position to undertake the likely sources of imports, the ranges of products that may come to affect them and accordingly they can devise their strategy for production and marketing.

When tariff lines go down, would there be greater pleas for AD measures?

It is one of the logical consequences but it would not be automatic in the sense that in every case of AD probe, the domestic industry, injured by increase in imports and reduction in tariff rates, has got to establish its own standing and also demonstrate linkage between dumping and causal injury. The very fact that as between 2001-02 and 2002-03 the number of cases has been more or less the same goes to prove that Indian industry is mature enough to face competition and it does not rush to DGAD under the drop of a hat for remedy.

Whether there would be fine-tuning of AAD after the post-Cancun WTO Ministerial?

The anti-dumping is a double-edged device is duly recognised by all and nobody would like to tamper with the salient features of the extant AAD as this remains one of the major milestones of the Uruguay Round (UR) Agreement.

On being challenged in court of law for its findings?

In a democratic society, rule of law should prevail with different levels of courts of appeal. Since our system has provided for all these, there is no question of even perceiving such procedures as undue or unnecessary interference. Ultimately, every stakeholder should feel that justice is being done — not only done but is seen to be done.

Whether any farm goods are brought under AD in the QR-free regime?

There are not many cases except the one on mulberry raw silk and another on butter oil where investigation is on. The difficulty is in regard to standing since farming is decentralised. The very fact that in the case of mulberry raw silk, the preliminary duty was imposed after the stipulated 60 days period was over from the day of investigation began shows that we have been careful in satisfying ourselves with regard to all parameters.

How geared the DGAD in facing down the charge that it is China-centric?

There is no specific country focus when the DGAD takes up the case. With China's entry into WTO, more discipline is discernible and China has cooperated with India in determining the injury caused by imported goods. Besides China, bilateral cooperation on anti-dumping issues would be institutionalised with the European Union and South Korea for mutual benefits and interchange of experience.

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