Consequently, Indian cotton bed-linen will have an access to the EU market without attracting an unfair anti-dumping duties ranging from 11 per cent to 24 per cent imposed since 1994.

''DSB decision will be a landmark judgement as it will affect other EU cases on anti-dumping'',Union Minister of textiles, Kashiram Rana said.

EU has already been asked to not only implement the DSB decision but also refund the duties collected earlier in the recently concluded meeting of the joint working group on textiles held in Brussels on October 23 and October 24, 2000.

Despite bed-linen being under a quota, EU has been consistently taking up the case to impose anti-dumping duties on imports from countries like India, Pakistan and Egypt. Initially, the anti-dumping proceedings were initiated on January 25, 1994 but on withdrawal of the complaint by the complainant, Eurocoton, these proceedings were terminated in July, 1996.

However, they were soon initiated on a fresh complaint by Eurocoton, just 20 days after the withdrawal of the first complaint. As the EC did not agree to withdraw the anti-dumping duties during the bilateral consultative process, the matter was taken to the WTO.

It has now ruled that the EC acted inconsistently with its obligations under article 2.2, 3.4 and 15 of the anti-dumping agreement in (a) determining the existence of margins of dumping on the basis of a methodology incorporating the practice of zeroing ; (B) failing to evaluate relevant factors having a bearing on the state of the domestic industry; (C) considering information for producers not part of the domestic industry as defined by the investigating authority in analysing the state of the industry , and; (D) Failing to explore possibilities of constructive remedies before applying anti-dumping duties.

The panel concluded that under article 3.8 of the DSU, the action is prima facie a case of nullification or impairment of benefits under that agreement. It has recommended that the EC should bring its rules in conformity with its obligations under the agreement.

(UNI)