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The Financial Express

Export of jute, jute goods: Bangladesh readying to seek Indian ADD revision

| Updated: January 12, 2023 17:13:36


Export of jute, jute goods: Bangladesh readying to seek Indian ADD revision

Dhaka is set to seek revision of the anti-dumping duty (ADD), imposed by India on Bangladeshi jute and jute goods, officials said.

To this effect, the government is scrutinising the merit of filing petition and appeal against the ADD on jute and jute goods to the World Trade Organisation's (WTO) dispute settlement body and the Directorate General of Trade Remedies (DGTR) of India respectively.

India extended the ADD on import of jute and jute goods from Bangladesh for another five years on December 30, 2022. The duty applicable is ranging from US$6.3 to $351.72 per tonne.

Earlier, on January 05, 2017, the Indian finance ministry imposed the ADD, ranging from $19.30 to $351.72 a tonne, for a period of five years on import of Bangladesh's jute yarn, jute bags, twine and hessian fabric amid allegations of dumping.

When contacted, Md Hafizur Rahman, director general (additional secretary) at the WTO Wing, Ministry of Commerce (MoC), said: "We are scrutinising the move to know the merit of filing petition and appeal against the ADD imposition on jute and jute goods with the DGTR of India and the WTO respectively."

"We will sit with the different stakeholders, including the Bangladesh Trade and Tariff Commission (BTTC) officials and local jute exporters, for consultation regarding the issue," he added.

Bangladesh is trying to challenge the neighbouring country for imposing the ADD on its products by taking the issue to the DGTR and the WTO, another official said.

He also mentioned that the MoC is taking necessary steps to get properly prepared regarding the issue and take it to the DGTR and the WTO after approval from the government's high level.

"But it will take time. The ministry is working to know the pros and cons in this connection," he noted.

An expert said, "We can expect a good result, if a strong case can be filed with the WTO."

Earlier, Bangladesh tabled 17 points to the WTO in the lead acid battery case, he added.

Bangladesh exports around 30 per cent of its exportable jute goods to India with the BJMC having the largest share. India is the second-largest exporting country for Bangladesh.

Investigation into anti-dumping is very complex, and it requires maintaining quality data by exporters and technical experts to defend a case, according to officials at the Ministry of Textiles and Jute.

They said it would be hardly possible to settle the issue with India bilaterally.

"We applied for withdrawal of the ADD several times, which were rejected," said one of the officials.

"We'll have to put pressure on India. We can take legal actions through the WTO," said a senior official at the Export Promotion Bureau (EPB).

Bangladesh was also trying to convince the Indian authorities concerned through diplomatic or political channels, arguing that the ADD imposed by the neighbouring country already hit hard Bangladesh's export earnings, he added.

Before imposing the ADD, the Indian Directorate General of Anti-Dumping and Allied Duties (DGAD) carried out an investigation from April 01, 2014 to March 31, 2015 with injury analysis, covering a period from 2011-12 to the period of investigation.

The country's jute industry is passing a tough time in exporting jute and jute goods to India, industry insiders said.

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