The National Institute of Defense of Competition and Intellectual Property Protection (INDECOPI) in Peru has suggested imposition of antidumping measures on imports of China’s garments and 10% countervailing duty on the imports of US cotton fiber.
In a statement, INDECOPI said the investigations on imports of Chinese clothing and cotton fiber from the US were conducted respecting the legal framework of the World Trade Organization (WTO).
Velaochaga Tessano Herbert, chairman of the INDECOPI Board, said both investigations were conducted through the Commission of Antidumping and Subsidies (CFD) to identify and eliminate market distortions prevailing in the country.
According to the statement, in case of Chinese garments, it was found that imports had increased significantly are adversely affecting the performance of domestic manufacturers, whereas in case of cotton fiber imports, monitoring activities were conducted on the subsidies provided by US.
However, the Association of Exporters (ADEX) in Peru and the National Society of Industries (SNI) are not in favour of implementing the countervailing duties, as suggested by INDECOPI on the import of US cotton fiber.
According to ADEX, the surcharge of 10%, if imposed on the import of US cotton, would adversely affect Peruvian garment exports, as the garment prices would go up by an estimated 4%.
Meanwhile, Foreign Trade Society of Peru (ComexPeru) has also opposed imposing additional surcharges on the import of Chinese garments and US cotton, as it would affect the trade and tariff policy of the country.