The National Tariff Commission (NTC) has asked the Pakistani industrialists that if they are facing unfair trade practices, especially dumping, subsidies given to foreign exporters/manufactures and in case of a sudden surge in import of a particular product due to which domestic industry has been adversely affected, they may apply to the NTC for remedial measures.
Talking to Business Recorder here on Tuesday, senior officials of the NTC said that under the WTO rules governing new safeguard measures, a country could take emergency action following an investigation conducted by the competent authorities against a sudden and unforeseen surge in imports or unfair trading practices, that seriously injure the local industry.
Consequent upon receipt of an application, from Pakistan Footwear Manufacturers Association, the NTC had already started an investigation into alleged sudden surge in imports of footwear into Pakistan under the Safeguard Measures Ordinance 2002.
They made it clear that the NTC would conduct an indiscriminate investigation of all sources of import of footwear into Pakistan and the inquiry would not be directed towards one source only.
Meanwhile, industrial sources told Business Recorder that several cottage industries, including cutlery and knife industry of Wazirabad, are on the brink of closure or facing serious problems due to sudden surge of imports of products into Pakistan from different sources which called for immediate safeguard measures.
The NTC has also started anti-dumping process against urea formaldehyde moulding compound of China and polyester filament yarn of Korea, Malaysia, Indonesia, and Thailand on applications filed by some affected parties.
They said that taking anti-dumping action, the NTC had already imposed 27.33 definitive duty on tinplate of Mac Steel, South Africa, 96.50 percent on French exporter and 22.26 percent on Indonesian exporter of Sorbitol''s 70 percent solution, 13.77 percent definite duty on glacial acetic acid of Chang Chun Petro Chemical Co Ltd, Taiwan, 12.71 percent on acrylic tow exported by four parties of Uzbekistan, 40.18 percent and 31 percent on Korean and Iranian exporters of PVC Resin.
The WTO experts, however, told Business Recorder that safeguard measures may only be applied to the extent necessary to remedy or prevent serious injury and to facilitate adjustments, therefore, the local industrialists must cut down the production cost and quality of their products and make them competitive in the market.
They said that the local industries could not be protected for a long time at the cost of the consumers and wage earners must get the necessities of life at reasonable prices.