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Pratap Ravindran

PUNE, Nov. 2

THE World Trade Organisation (WTO), in its semi-annual report, has noted a decline in anti-dumping investigations in the first half of the current calendar.

The WTO Secretariat has reported that in the January 1 to June 30 period, 17 members initiated 104 anti-dumping investigations against exports from a total of 39 different countries or customs territories.

During the corresponding period of 2001, 19 WTO members had initiated 149 anti-dumping investigations.

Out of the 104 initiations for the reported period, developed countries initiated 37, while 63 were initiated by developing countries.

India initiated 25 investigations during the first semester of 2002, as compared with 24 investigations initiated during the first semester of 2001. The US had the second highest number of initiations (22) during the first half of 2002, compared with 40 during the corresponding period in 2001. China, with 16 investigations on its exports, is at the top of the list of countries subject to anti-dumping investigations, although this number represents a decrease from the 24 investigations initiated on Chinese exports during the first semester of 2001. India, Indonesia and Russia were next, each with six investigations initiated on their exports in the first half of 2002. The largest group (38) of investigations initiated during the first half of 2002 involved products classified in the base metals sector of the Harmonised System of Tariff Classification, which includes iron, steel and aluminium products. The other most affected sector was chemicals, with 36 investigations initiated. Out of its 25 investigations India initiated the majority (20) on chemical products, while out of the 22 initiations by the US there were 16 were on base metals products.

Fourteen WTO members imposed a total of 111 final anti-dumping measures against exports from 43 countries or customs territories during the first half of 2002. This total represents an increase from the 82 measures imposed during the corresponding period of 2001. It is also worthy of note that for the period reviewed there were more final measures than initiations, suggesting a decline in the use of the anti-dumping instrument. The US imposed the most final measures (25) during the first semester of 2002, a significant increase from the eight final measures imposed by the US during the corresponding period of 2002. India was a close second to the US in the number of final measures imposed during the period, with 21 measures.

Exports from China were the subject of the largest number, 19, of final measures imposed during the first semester of 2002. For China, this represents a significant increase from the nine measures imposed against its exports during the first semester of 2001. As was the case for initiations, the sector most affected by final measures was base metals, with 33 final measures imposed on products in that sector. This was followed by the chemicals sector, with 30 measures imposed, and the plastics sector with 18 measures.

The WTO Anti-Dumping Agreement allows governments to act against dumped imports where there is material injury to the competing domestic industry. GATT Article VI allows countries to take action against dumping. The Anti-Dumping Agreement clarifies and expands Article VI, adding detailed procedural and substantive requirements, and the two operate together. They allow countries to act in a way that would normally break the GATT principles of binding a tariff and not discriminating between trading partners.

Meanwhile, the US, which led in the imposition of final measures in the first semester of the current year, is, in a significant move, submitting a proposal to the WTO, aimed in part to prevent its dispute-settlement panels dealing with dumping and subsidies rules from "overstepping their bounds."

According to the Office of the US Trade Representative (USTR), the proposal will also set "a high threshold for changing the existing WTO agreement on those rules" and list four "guidelines" for US negotiators.

Further, the USTR says that it wants to make the systems followed by other countries for imposing anti-dumping duties and countervailing duties "more open and transparent."

It may be recalled in this context that members of the US Congress have expressed outrage at WTO panel rulings that have overturned US trade remedy laws or the implementation of these laws.

The Bush Administration believes that its commitment to a vigorous enforcement of US laws against unfair foreign trade practices is "crucial for congressional and public support for the Trade Promotion Authority.

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