Trade remedies as barriers: Implication for SAARC countries Abhijit Das Senior Trade Officer

1. UNCTAD Trade remedies as barriers: Implication for SAARC countries Abhijit Das Senior Trade Officer UNCTAD India Programme Organised by Teri, 3 May, 2006

2. Who are the users of trade remedies in SAARC ? India is the user of trade remedies in SAARC It imposed anti-dumping duty on 3 products from SAARC countries

3. Impact of anti-dumping duty acrylic yarn imports from Nepal Total Acrylic yarn imports from Nepal

4. Impact of anti-dumping duty Lead acid batteries imports from Bangladesh

5. Impact of anti-dumping duty on Zinc Oxide imports from Nepal

6. Anti-Dumping measures as trade barriers • Trade chilling effect of initiation of anti-dumping investigation • Significant reduction in absolute value of imports and import share • Message is clear- initiation of anti-dumping investigation and imposition of duties can be significant barriers to trade

7. Anti-Dumping: LDCs provision in SAFTA • Give special regard to the situation of the Least Developed Contracting States when considering the application of anti-dumping and/or countervailing measures • Provide an opportunity to Least Developed Contracting States for consultations • Shall, to the extent practical, favourably consider accepting price undertakings

8. SAFTA LDCs provision: Is it beneficial • LDCs provision is an improvement on Art. 15 of the ADA • Possibility of country-to-country consultations • Although non-mandatory in nature, favourable consideration of price undertakings would be a positive step • Whether SAARC LDCs are able to benefit from these provisions will depend on their level of preparation

9. Consultations: What preparations required • Basic data on imports of the product under investigation – IBIS may be a useful source • Did the petition contain adequate information justifying initiation of the investigation – on dumping, injury and causality • Has the analysis of the 15 injury factors been done in accordance with the requirements of ADA? • Documentation of why the investigation is flawed

10. Are non-LDCs without any remedy? • As an interested party, govt. of the exporting country has a full opportunity for the defence of its interests throughout an anti-dumping investigation. • Preparation similar to that suggested for LDCs applicable. • Investigating authorities are mandatorily required to take due account of any difficulties experienced by interested parties in supplying information requested- need to effectively use this provision

11. SAFTA Safeguard provisions • SAFTA safeguards can be imposed only on products subject to a concession under SAFTA • SAFTA does not preclude SAARC countries from resorting to global safeguards under WTO. • Requirement of investigation for imposition of SAFTA safeguards – investigation procedure to be consistent with requirements under Art XIX and Agreement on Safeguards

12. SAFTA Safeguards : How are these different from global safeguards • SAFTA safeguards limited to products covered by concessions under SAFTA • Maximum duration of application of SAFTA safeguards is 3 years as against 8/10 years under Agreement on Safeguards • SAFTA has 5%/ 15% LDC exception as against 3%/ 9% developing country exception for global safeguards

13. SAFTA Safeguards: Ambiguities • Can global safeguards and SAFTA safeguards be applied simultaneously on the same product • What should be the period for determining the 5%/ 15% import share for LDC exception • Can SAFTA safeguard measures be in a form other than temporary suspension of tariff concessions

14. Conclusions • Although anti-dumping duties have acted as trade barriers in SAARC, effective utilisation of ADA/ SAFTA provisions could help redress some of the underlying problems. • While SAFTA safeguard provisions may be LDC friendly, need for addressing ambiguities.

15. THANK YOU