Post-WTO, efforts on to save domestic sector

Arvinder Kaur

New Delhi, May 22: AS the government takes a beating on opening the country’s doors to ‘unhealthy’ competition, and the ensuing confusion looming large over the World Trade Organisation (WTO), many state and non-state initiatives have been launched to create awareness among the business community on how best to protect its interests.

While the Directorate General of Anti-Dumping and Allied Duties (DGAD) has constituted a committee to address the legal and procedural issues to facilitate and streamline anti-dumping investigations, a group of legal experts have got together to create a Website to address the concerns of the domestic industry. “In the post-WTO scenario, it is critical for the Indian businesses to be fully aware of its rights and obligations to remain fully competitive. It is important for Indian entrepreneurs to understand the complex WTO regulations in the larger context,” says LV Saptharishi, director-general, anti-dumping.

The DGAD is utilising the services of Director General of Foreign Trade officials, posted in 13 ports to act as nodal officers, “to collect petitions on our behalf,” and the government is also considering a proposal to provide financial assistance to small-scale industries wanting to fight anti-dumping cases, says Saptharishi. “It is a matter of concern that no adequate information about the anti-dumping safeguards is available.”

“Confusion still looms large in the minds of small manufacturers, who are totally unaware of what WTO is, or what dumping is all about, and the remedies available to them,” says YP Suri, honorary general secretary, Federation of Association of Small Industries of India.

“Due to the technicalities of the subject, understanding about the same has become a slow process. But, by and large, the awareness is increasing,” says an official of CII’s WTO cell, noting that the CII is organising various seminars and programmes all over the country, especially in rural areas, to create awareness about anti-dumping issues. But, Sharad Bhansali, consultant, Strategic Law Group (SLG), says despite various efforts, the issues are still not clear. “Not everyone needs to understand the technicalities, but at least they should be aware of the mechanism available to them, in case they are affected.”

The SLG has set up a Website to disseminate information to the domestic industry and the Indian exports on these issues. It has a specialised online query handling feature, and the doubts are handled by a group of legal experts.

“As India rapidly integrates into the global economy with the advent of the WTO and with enforced commitment to the reform process, there has been a two-fold effect — increased competition to the Indian companies operating within India due to increased market access and the need for Indian companies to improve their own effective access in the foreign markets,” says Bhansali claiming that his site addresses all the issues. “The government’s anti-dumping cell is also quite active. The CII, along with government officials, is conducting special sessions with small manufacturers per se about the WTO and dumping,” says a CII official. In fact, they are fast picking up the nitty-gritties as it concerns them all. For India, to file a complaint in the WTO, the petition has to be by around 50 per cent of the concerned industry — and this 50 per cent would have the small and medium players too, says the CII official.

The committee set up by the DGAD is also looking into the legal issues to streamline anti-dumping investigations apart from its focus into the inadequacies in the laws and rules governing anti-dumping procedures in the country.

Not very satisfied at the steps being taken by various quarters, Suri says all this should have been done much earlier and the industry, especially the small-timers, adequately prepared to deal with the issues.“To file complaints, we need to know what is the pricing mechanism in the countries dumping their goods here, but where are the resources with us to do that. The government should provide us all the information readily,” he says. The authorities will have to really speed up their efforts to help the small-sector which finds itself swamped by cheap imports, says Suri. (PTI)