ISLAMABAD - The domestic industry is shrinking in current highly competitive world market but the major stakeholders; the government, the regulators and industrialists, are out of rhythm to fight their cases locally as well as internationally.

There are trade defence laws; Anti-Dumping Duties Ordinance 2000, Countervailing Duties Ordinance 2001 and Safeguard Measures Ordinance 2002, to provide full protection to the local industries against any unfair trade move of foreign producers and governments.

"The strong regulatory framework under National Tariff Commission (NTC) is in place, however, the local industries are reluctant to knock at the door of NTC to seek technical support against foreign producers' foul play at domestic as well as at world level," NTC officials revealed to a group of journalists here Wednesday.

Giving details of the trade defence laws and NTC's role to help the domestic industry since its inception back in 1990, they said the commission was actively working to protect the domestic industry and would welcome if the industry approached it at any unfair trade issue.

They, however, complained that the commission was being ignored by the government and private sector in some of the national importance cases like that of European Union imposition of anti-dumping duty on bed-linen and Egyptian government duty on matchbox of Pakistan.

It was felt that there needed certain steps to make the commission businessmen friendly and work for the better harmony among the different stakeholders to have a balance national policy on unfair trade issues.

Chairman NTC Muhammad Ikram Arif admitted that the people's confidence in the public sector organisations was major hurdle in the way of the commission too and it needed to be removed. "Lack of awareness, trust-deficit in government departments and fears of industrialists and manufacturers in hiding accounts data to avoid tax machinery's wrath," he elaborated the causes of fewer complaints in the commission.

He said the government has recently established an Appellate Tribunal to hear appeal cases against the decisions of the NTC. Currently, the aggrieved parties were moving higher judiciary including Supreme Court of Pakistan against the decisions of the commission, he added. "Some 70 to 80 writ petitions have been filed against ours decisions and very few approached to the Dispute Settle Body (DSB) under World Trade Organisation," Ikram added.

During the discussion, it was highlighted that the domestic industry's education on trade defence laws was very important and the commission was not bound to keep the data provided to it by respective industries, confidential and not handing over to Federal Board of Revenue. However, if there were massive under invoicing and over invoicing complaints about importers and exporters, the commission could seek the help of tax authorities to make a fair judgement on any complaint, the Chairman NTC stated.

To a query on any special treatment to any country including China, Pakistan's all-weather friend, he clarified that no such instructions or directives were issued to show leniency towards the said country. "We have decided two cases against Chinese producers on the charges of dumping and we will investigate against any if the local manufacturers filed application, proving injuries to their industry," he argued.

Director NTC Khizar Hayat gave a detailed presentation on the dumping issue and the procedure for filing applications against any foreign exporter and producer on dumping charges with some supporting data.

The NTC will provide full technical support to the industry. For this purpose, NTC had already kicked-start the awareness and education campaign on dumping issues.

Chief Legal Officer Mazhar Raz Bangash apprised of the anti-dumping investigation procedure and the steps NTC was taking while carrying out investigation of any specific dumping case. From the filing of application to the imposition of final duty on any under review product, the NTC collected the data from the complainant and also the accused foreign producer, he said.

He said there were a number of cases of anti-dumping duties as compared to safeguard measures and countervailing duties. There was no single case of countervailing duties and about safeguarding measures, Bangash said, adding they sent their recommendations to the government if there was any surge in certain items' imports and then the government takes the decision in that respect.

Deputy Director NTC Hamoodur Rauf explained the injury and casual link caused due to the unfair trade and liable under anti-dumping, countervailing and SMS laws. He told the journalists that there were a number of set procedures to ascertain whether the claim of the local industry and complainant was right or wrong.

By HAQ NAWAZ submitted May 22, 2008

Source: www.nation.com.pk