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Peru to review anti-dumping duty on Chinese denim

Mar '12
The National Institute for the Defense of Competition and Protection of Intellectual Property (Indecopi) of Peru has begun a review of the anti-dumping duties that are currently being levied on imports of Chinese cotton denim fabrics.

Currently, Peru levies anti-dumping duty on cotton denim fabrics originating from China that contain less than 85 percent of cotton and weighing lower than 200 grams per square metre, according to Indecopi's Committee on Anti-dumping and subsidies.

In view of the current levy period nearing expiry, the National Society of Industries (SNI) and the New World Industrial Company requested Indecopi to initiate a review of the anti-dumping duties to recommend whether the duties be continued for an additional period or withdrawn after the completion of three years of its imposition.

Cotton textiles imports from China increased from 37 tons in 2010 to 261 tons in 2011, in spite of the levy of anti-dumping duty on such imports. Hence, if the duty is abolished, Chinese cotton fabrics would enter the Peruvian market at prices that are lower than the current average price of US$ 4.33 per kilogram, SNI said.

In other Latin American countries like Brazil, Chile, Colombia and Paraguay, where there are no anti-dumping measures, the prices of Chinese fabrics are lower than in Peru. If Peru removes anti-dumping duty, then prices of Chinese fabrics in the country would also fall to levels at par with prices in other Lain American countries, it added.

In addition, if anti-dumping duties on Chinese cotton fabrics are removed, it would harm Peru's domestic textile industry, as imports from China would increase substantially at prices that are less than the prices at which these products are supplied by Peru's domestic manufacturers.

This becomes especially critical considering the capacity of China to export large volumes of cotton fabrics to different markets and the fact that Peru provides more opportunities for import of cotton fabrics compared to other countries in the region.

Fibre2fashion News Desk - India

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