INDECOPI suggests duties on Chinese garments & US cotton

The National Institute of Defense of Competition and Intellectual Property Protection (INDECOPI) in Peru has suggested imposition of antidumping measures on imports of China’s garments and 10 percent countervailing duty on the imports of US cotton fibre.

 

The research instigated in 2012, on imports of clothing from China at alleged lower prices, and subsidies provided by the US Government on the import of cotton, indicated that the domestic apparel manufacturers and cotton producers in Peru were adversely affected by the imports.

 

In a statement, INDECOPI said the investigations on imports of Chinese clothing and cotton fibre from the US were conducted respecting the legal framework of the World Trade Organization (WTO).

 

According to the statement, the investigation of both the imports of Chinese clothing and cotton fiber from the US were conducted in a technical manner with full responsibility and observing the applicable legal framework for resolving competition disputes.

 

Velaochaga Tessano Herbert, chairman of the INDECOPI Board, said both investigations were conducted through the Commission of Antidumping and Subsidies (CFD) to identify and eliminate market distortions prevailing in the country.

 

According to the statement, in case of Chinese garments, it was found that imports had increased significantly are adversely effecting the performance of domestic manufacturers, whereas in case of cotton fibre imports, monitoring activities were conducted on the subsidies provided by US.

 

However, the Association of Exporters (ADEX) in Peru and the National Society of Industries (SNI) are not in favour of implementing the countervailing duties, as suggested by INDECOPI on the import of US cotton fiber. 

 

According to ADEX, the surcharge of 10 percent, if imposed on the import of US cotton, would adversely affect Peruvian garment exports, as the garment prices would go up by an estimated 4 percent.

 

Meanwhile, Foreign Trade Society of Peru (ComexPeru) has also opposed imposing additional surcharges on the import of Chinese garments and US cotton, as it would affect the trade and tariff policy of the country.