Home / Knowledge / News / Textiles / Peru may not impose countervailing duties on US cotton
Peru may not impose countervailing duties on US cotton
26
Nov '13
The National Institute of Defense of Competition and Intellectual Property Protection (INDECOPI) in Peru has announced that there is no requirement for applying countervailing measures on imports of cotton from the US, as damage to the national cotton production was caused by other factors and not imports from the US.
 
According to a statement issued by INDECOPI, after conducting a full and thorough investigation, the Committee on Antidumping and Subsidies (CFD) of INDECOPI has come to a conclusion that legal requirements are not met with to apply countervailing measures on imports of cotton from US, under the Grant Agreement of the World Trade Organization (WTO).
 
As per the WTO agreement, compensatory measures could only be applied after verification that imports into a country at subsidized prices by the Government of the country where the product is manufactured, is directly causing damage or affecting the domestic industry or manufacturers of the same product in the country that imports. If it is determined that damage was caused by factors other than imports, the countervailing measures could not be imposed.
 
According to the investigation on imports of US cotton conducted by the INDECOPI, it was found that the domestic industry of Peru suffered material injury during the 2006-2011 period. However, it was determined that the damage was not due to the subsidy provided by the US Government on imports of cotton, but other factors such as the depreciation of dollar during the period and the elimination of tariffs in 2009.
 
With this conclusion, the INDECOPI has officially ended the investigation that began in June, 2012, in compliance with supervisory role exercised constantly to ensure that markets function without distortions, in accordance with the agreements and international commitments made by Peru.
 
In August 2013, the INDECOPI had suggested a 10 percent countervailing duty on US cotton imports, as well as antidumping measures on imports of Chinese clothing, as the domestic apparel manufacturers and cotton producers in Peru were adversely affected by these imports.
 
However, the Association of Exporters (ADEX) in Peru, the National Society of Industries (SNI) and the Foreign Trade Society of Peru (ComexPeru) opposed the imposing of these measures stating the countervailing duty on US cotton imports would affect Peruvian garment exports as well as the trade and tariff policy of the country.
 

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 24th Jun 2017

Applied DNA to tag cotton for 2017/18 US ginning season

Applied DNA, provider of DNA-based supply chain security,...

Apparel/Garments | On 24th Jun 2017

NPD Group launches Trend Tracker for apparel trends

Global information company the NPD Group has launched Trend Tracker,...

Textiles | On 24th Jun 2017

Cotton USA’s first innovation competition in UK ends

Cotton USA has announced the successful close to its first innovation ...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search