India raises fresh trade dispute against EU at WTO over PET exports

09-Dec-08

The European Union has decided to continue with final anti-dumping duties as well as anti-subsidy (countervailing) measures on the Indian exports of polyethylene terephthalate (PET). India has raised a fresh trade dispute against the EU at the World Trade Organization (WTO) over this decision, saying Brussels allegedly violated core provisions of the Agreement on Anti-Dumping as well as Subsidies and Countervailing measures. Under the WTO's anti-dumping and anti-subsidy rules, the EU is required to terminate its measures after 5 years. But Brussels continued to impose them on grounds that Indian exports could harm the European producers. India said the EU had not properly applied the relevant legal standards, arguing that Brussels failed to justify why it would need to continue these measures even after their expiry under the anti-dumping and anti-subsidy rules. India has asked the EU to enter into what are called Article 4 consultations under the dispute settlement mechanism. This is the first step for countries to resolve trade disputes, under which the complainant has the right to call the other party to enter into consultations. Brussels is required to hold consultations within 60 days during which it can amicably resolve the dispute. If the two parties fail to reach a satisfactory outcome, New Delhi can call for the establishment of a panel to adjudicate over its complaint. India has said the EU had initiated expiry reviews in both these measures, based on the requests from its industry that were not duly substantiated, and more so, after the date on which the definitive duties should have been removed. Further, the EU measures are not based on positive evidence and an objective examination. India maintained that Brussels violated several other provisions of the two agreements.