India's trade protection active for Chinese textile

 

On November 19, India made the final ruling of anti-dumping review by originating in China, Malaysia, Indonesia, Thailand, South Korea's nylon filament yarns. On August 27^th, 2010, the India government promised the India Synthetic Fiber Industry Association requirements, which initiate an investigation the anti-dumping review by originating in China, Malaysia, Indonesia, Thailand, South Korea’s nylon filament yarns. On November 19, the DGAD (Indian Anti-dumping and Directorate General of Customs) announced the results of the survey.

 

In the report before the facts disclosed, the Bureau of Indian Anti-dumping will remain think that China is a non-market economic country, and approved by the practice in the first trial that adopt the structure price to calculate China's export products of the normal value. Finally, the dumping margin of Chinese products has been identified as 29%. At the same time, the Bureau of Indian Anti-dumping is comprehensive considerations that the applicant provide the raw material prices, labor costs, interest rates, cost of sales and other evidence material, which identified after ending the five years’ tax and the anti-dumping and injury may continue to exist.

 

In the textile and apparel foreign trade, China, India, Vietnam and other countries is both complementary and competitive. As a matter of fact, in recent years India, Vietnam and other countries of the textile and apparel that the share is increased continually in the United States, these countries seize our international market share, which is also carried out the protectionist measures for our country textile and apparel products and the enterprise. In the anti-dumping issues, China and India are the world's anti-dumping investigations more countries. The difference is that China is not only anti-dumping more countries in the world, but it also suffered from the anti-dumping investigations more than any other country by the Indian. In 1995~2010, India launched a total of 142 anti-dumping final cases for China, accounting for 17.67% of the global anti-dumping cases. Especially after the financial crisis, according to the China textile and apparel products for the trade protectionism cases, the majority of it is initiated by India. To our country in the international market reputation and market share has had a negative influence.

 

First, the trade protection measures are relatively simple for China, which the anti-dumping as the main methods and form. At present, China's export products are subject to trade protection measures having anti-dumping, anti-subsidy; safeguard measures and special safeguard measures, technical trade measures, the intellectual property rights protection measures and import bans etc. Compared with Europe and America and other developed economies, the anti-dumping is the main means and form of India trade protection measures for China. Since the outbreak of the financial crisis in 2008, the Indian launched 29 anti-dumping cases for China, accounting for 22.48% of the total number of cases by the textile and garment. The special safeguard measures only initiated two investigations in 2010 by the acrylic fiber and nylon cord fabrics.

 

Second, the involving commodity scope is dominated by chemical fiber raw materials and industrial products, and a small involved weaving fabric. The most involved products are nylon filament, viscose filament, viscose staple fiber, acrylic fiber, nylon cord fabric, linen fabric and silk fabrics and so on.

 

The anti-dumping measures as one of the policy trade protection measures (anti-dumping, anti-subsidy and special safeguard measures); which is restricted other countries into its market or a threat to its related industries by the form of law and means. For some countries to protect their domestic enterprise interests, regardless of international trade law and take trade protection measures, we must take corresponding measures to counter firmly back. The Chinese enterprises whether are actively responding, how about the result of responding, it will have a demonstration effect for other countries.

 

Faced to the violent protectionist measures, how to avoid being double counter-investigation? How to respond? For the textile and garment export enterprises, it only brave face, actively responding, and argue on the basis of reason is the solution. But unfortunately, the article mentioned at the beginning of the nylon filament yarn anti-dumping case, no Chinese enterprises responding.

 

While in this aspect, the China textile and garment enterprises have quite successful cases. For example, on November 4th, 2011, the U.S. Department of Commerce issued to our country polyester staple fiber anti-dumping cases administrative review the third time the final results, Ningbo Dafa Chemical Fiber Co., Ltd. experienced six years of arduous and unremitting efforts to obtain three consecutive administrative review zero tax rate. According to the U.S. Department of Commerce regulations, if an enterprise is participated in three consecutive administrative review, and it will be given a zero tax rate, and the company's anti-dumping executive order will be cancelled.

 

The successful cases give us inspiration. The Chinese enterprise suffering from the international market of trade protection measures, only solidarity and took our hands legal weapon and responding firmly, which is the only way out of trouble. Give up litigation means giving up the market.