Brussels, 09/12/2003 (Agence Europe) - The European Union has referred a complaint to the World Trade Organisation against India which is criticised for having taken 27 anti-dumping measures between 1999 and 2003 without transparency, justification or sufficient proof. The dispute settlement procedure was initiated on Monday with a formal request for consultation with New Delhi, which is suspected of having exploited this trade defence instrument - for which India has become the leading user worldwide - in order to prevent foreign firms gaining a foothold on the Indian market.
Commenting on this action, which aims at almost all anti-dumping measures affecting European exports to India, European Commissioner Pascal Lamy stressed it is "essential that all players abide by the same rules and India is no exception. Ensuring fair trade should go hand in hand with clear, transparent and predictable rules. This is the way we prevent abuses of the system.", he said, hoping that "we will now be able to solve this matter amicably".
It is along these lines that the Europeans and their Indian discussion partners should work within the context of consultation (a compulsory precondition to the arbitration phase) which will open mid-January and will come to an end two months later.
Considerable discussion has already taken place around this question but "it has not been possible to persuade India to align itself to WTO norms", the Commission spokesperson said in a press release. Chemical, pharmaceutical, textile and steel products are the first targeted by anti-dumping measures that India has been stepping up since the end of the Uruguay Round. It is stressed in Brussels that the EU's economic interest is considerable, as one feels that trade losses by European exporters are beyond the EUR 50 million mark. Since the Uruguay Round, which ended in 1995, India has imposed a total of 241 anti-dumping measures (compared to 184 on the European side) while its customs duties on imports are around the highest in the world (35-50% for industrial goods), with also a long history of subsidies for its industry, it is stressed in Brussels.