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Mexican Senate for levying duty on Chinese denim
07
Nov '11
The Mexican Senate has recommended imposition of an anti-dumping duty on import of Chinese denim into the country. It has requested the Secretariat of Economy (SE) to publish the final outcome of its investigation on Chinese dumping of denim, and to impose a duty to countervail the same.

In its request, the Senate has said it is necessary to impose a duty on some of the denim imports to stop China dumping denim at a price below its original value.

In international trade, 'dumping' is treated as an unfair practice as it involves introducing products into another country at a price that is less than its value in the country of origin.

According to Senator Francisco Arroyo, Mexico currently imports 36 percent of its national production of denim from China. He adds that the country imported 269 million square metres of denim from China during April 2010 to July 2011, sufficient to make two pairs of clothing for every Mexican.

In view of this, it is necessary to immediately impose an anti-dumping duty of up to 35 percent on Chinese denim imports, so that the Mexican producers would not be affected by cheap imports, he exclaimed.

Senator Ricardo García Cervantes said the practice of 'dumping' by Chinese companies can lead to unemployment in the textile sector of Mexico.

Senator Antonio Mejia Haro demanded a complete investigation not only of dumping practices in denim, but also in the footwear industry and the agricultural sector.

Fibre2fashion News Desk - India


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