GCC to defend against WTO dumping charges

25/02/2009 12:00 - 646 Views

GCC countries are forging a joint front to defend themselves against charges levelled under the World Trade Organisation's (WTO) anti-dumping safeguard laws, it was revealed.

Allegations of dumping, in which nations contend others are disrupting their markets by unloading goods below cost, are up 40 per cent since a year ago, according to the WTO.

The charges against the GCC follow orders issued last October by WTO director Pascal Lamy to his staff to start tracking protective actions.

The Gulf's defence will be based on the GCC Common Law on Anti-dumping and Countervailing Measures and Safeguards, formulated in 2006, said Bahrain's Industry and Commerce Ministry industrial projects director Khalid Fathalla Mohammed.

'The objective and scope of the law is to prevent the GCC economies from the injurious practices in international trade that cause or threaten material injury to an established industry by taking appropriate measures,' he said.

'While we are defending ourselves at the WTO, we are also using the provisions of the law to ensure that the GCC nations are not used as dumping grounds by others.'

Mohammed was speaking on the sidelines of a workshop on the mechanisms of protection against harmful practices in international trade, at the Bahrain International Convention and Exhibition Centre.

The event, organised by the Industry and Commerce Ministry, aimed at updating participants on the provisions of the law, as well as its implementation.

'What dumping means is that some countries end up exporting products to other countries at a cost less than it is in their own countries,' said  Mohammed.

'This is considered an unfair trade practice.'

He said the other issue was that some 'unfair' subsidies were given by certain countries in other nations that they export to.

'The WTO has mandated that all these safeguards should exist to ensure a level playing field,' said Mohammed.

He said while Bahrain had generally escaped being a dumping ground, it had been accused a few months ago of 'dumping' elsewhere.

'That case had successfully been argued and the charge was dropped,' added Mohammed.

All charges against any GCC country were routed through the GCC Technical Secretariat in Riyadh, Saudi Arabia, he said.

Dumping relates only to non-agricultural goods, which are either produced in or imported into the region, said Mohammed.

'For example, the GCC has been mainly accused of dumping ceramic goods and petrochemical products and receiving similar materials,' said Mohammed.

He said that with industrial progress now coming of age in the region, it was imperative that such steps be communicated to all those concerned, so as to avoid any issues with the WTO.

He said around 3,000 such cases have been investigated by the WTO all over the world in the last 10 years and more than 2,000 anti-dumping measures had been taken.

TradeArabia News Service

Feb 24, 2009

Source: www.tradearabia.com
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