Anti-dumping duty on export of Pakistani matchboxes: WTO sets up panel to hear Pakistan’s case against Egypt
By Sajid Chaudhry
ISLAMABAD: The World Trade Organization (WTO), accepting Pakistan’s stance, has established a penal to hear Pakistan’s case against the imposition by Egypt of anti-dumping duty on export of Pakistani matchboxes, an official told Daily Times on Friday.
The official said that Pakistan had approached the Dispute Settlement Body (DBS) of the WTO challenging the anti-dumping duty on export of matchboxes from Pakistan to Egypt.
Pakistan had informed the DBS of the WTO that the Egyptian measure was inconsistent with WTO rules. The DBS of the WTO, while accepting Pakistan’s point of view on the issue, has established an experts’ penal to hear the case.
The official informed that the European Union, the United States and China had reserved their third party rights in this case.
The anti-dumping duty of 26 percent to 29 percent was imposed by Egypt on November 29, 2003. Pakistan, before approaching the DSB, had consulted the Advisory Centre on WTO Laws in Geneva to this effect and keeping the consultations in view, it decided to move the DSB.
“The National Tariff Commission (NTC) had earlier recommended the ministry of commerce to move the WTODSB against the antidumping duty imposed by Egypt, saying that the duty ranging from 26 to 29 percent was unjustified,” the official said.
Egyptian authorities had started investigations on August 11, 2002 against Pakistani matchbox exporters on charges of dumping in Egypt. Egypt imposed a duty of 29 percent against Khyber Match, 26 percent against Mohsin Match and 29 percent against some other exporters.
The official said the match exporters without consulting the NTC gave the Egyptian authorities information about the pricing mechanism of matchboxes, because of which the exporters lost their case.
The official claimed the investigation carried out by Egyptian authorities had a lot of flaws, because of that the NTC had recommended the ministry of commerce to move the DSB.
To a question, he said some Pakistani exporters had filed cases in an Egyptian court challenging the antidumping duty.
He said individuals could contest the case in an Egyptian court but only governments could move the DSB."
The official said that Pakistan’s exports to Egypt were $ 3 million per annum and the amount could increase if Pakistan won the case.