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Major yarn producer accuses foreign exporters of dumping
09 Sep '11
2 min read
Egypt's major yarn producer has accused foreign exporters of dumping yarn into the country's local market.
Holding Co. for Spinning and Weaving has resorted to legal action against the foreign exporters in order to guarantee fair competition and to save public sector companies from becoming bankrupt.
Dumping is said to have occurred when an item is exported to another country and sold there below the local market value. It thus forces the local companies to either reduce prices to remain competitive or to shutdown their business.
The World Trade Organization does not intervene in dumping cases, but informs Governments on how to react or not. Thus, the Government is entitled to take adequate measures to protect its local industry.
Currently, yarn manufacturing companies in Egypt are unable to withstand competition from the low-priced imported yarn and have significantly reduced the prices, threatening the future of not only the companies themselves, but also livelihood of about 53,000 workers employed therein.
Experts say the anti-dumping case may prove detrimental, as it has come at a time when Egypt is in urgent need of foreign direct investments after the January 25 uprising.
Since Egypt is bound by international trade agreements, it cannot stop the import of yarn into the country, but the issue needs to be brought to the limelight, they add.
A way suggested by them is for disadvantaged public enterprises to take up the issue with the various ministries in the Government.
Holding Co. for Spinning and Weaving trades with many countries in North and South Americas, Europe, Asia and Africa.
In the first two months of the current year, Egypt imported cotton, textiles and clothing worth US$ 355 million, while its exports stood at US$ 490 million.
Holding Co. for Spinning and Weaving has resorted to legal action against the foreign exporters in order to guarantee fair competition and to save public sector companies from becoming bankrupt.
Dumping is said to have occurred when an item is exported to another country and sold there below the local market value. It thus forces the local companies to either reduce prices to remain competitive or to shutdown their business.
The World Trade Organization does not intervene in dumping cases, but informs Governments on how to react or not. Thus, the Government is entitled to take adequate measures to protect its local industry.
Currently, yarn manufacturing companies in Egypt are unable to withstand competition from the low-priced imported yarn and have significantly reduced the prices, threatening the future of not only the companies themselves, but also livelihood of about 53,000 workers employed therein.
Experts say the anti-dumping case may prove detrimental, as it has come at a time when Egypt is in urgent need of foreign direct investments after the January 25 uprising.
Since Egypt is bound by international trade agreements, it cannot stop the import of yarn into the country, but the issue needs to be brought to the limelight, they add.
A way suggested by them is for disadvantaged public enterprises to take up the issue with the various ministries in the Government.
Holding Co. for Spinning and Weaving trades with many countries in North and South Americas, Europe, Asia and Africa.
In the first two months of the current year, Egypt imported cotton, textiles and clothing worth US$ 355 million, while its exports stood at US$ 490 million.
Fibre2fashion News Desk - India
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