XN000022-1993-03-19 — Page 7

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FRIDAY, MARCH 19, 1993

BAD

"INDUSTRIALISED COUNTRIES WHICH SET

EXAMPLES BY ABUSIVE USE OF ANTI-DUMPING ACTIONS MAY FIND THEMSELVES EMULATED BY OTHERS.

"TOO SOON, THEY MAY FIND THEMSELVES THE VICTIM OF THE GOLDEN RULE OF TRADE: WHAT YOU DO UNTO OTHERS WOULD BE DONE UNTO YOU.

זז

"THE SIGNS ARE WORRYING, MR TSANG SAID. HE QUOTED FIGURES TO DEMONSTRATE THE PROLIFERATION OF NEW USERS AND ANTI-DUMPING ACTIONS WORLDWIDE.

IN 1980/81, THERE WERE AROUND 70 CASES. IN 1991/92, THERE WERE OVER 230 CASES. "USERS ARE NOW NO LONGER CONFINED TO INDUSTRIALISED COUNTRIES, HE SAID.

FT

"APART FROM THE FOUR TRADITIONAL USERS. THEY BRAZIL, INDIA, JAPAN, KOREA, MEXICO, POLAND AND TURKEY.

NOW INCLUDE

"WE UNDERSTAND THAT MORE ARE IN THE OFFING. THESE WOULD MEAN MORE TRADE CONFLICTS AND RETRIBUTION IN THE LONG RUN, PROBABLY IN DIFFERENT GUISE. THEY ARE NOT CONDUCIVE TO INTERNATIONAL TRADE, HE ADDED.

FROM 1980 UNTIL NOW, GLOBALLY 30 CASES HAVE BEEN INITIATED AGAINST HONG KONG, 13 RESULTED IN ANTI-DUMPING DUTIES, 15 WERE TERMINATED AND TWO ARE STILL UNDER INVESTIGATION.

A

ACCORDING TO MR TSANG, THESE ANTI-DUMPING ACTIONS COVERED WIDE RANGE OF PRODUCTS INCLUDING TEXTILES, PHOTO ALBUMS, CERTAIN FOOTWEAR ITEMS, TABLEWARE AND EVEN CANDLES.

LAST YEAR, THERE WAS A RECORD NUMBER OF EIGHT CASES AGAINST HONG KONG: ONE FROM AUSTRALIA, ONE FROM THE EC, ONE FROM KOREA, THREE FROM MEXICO AND TWO FROM NEW ZEALAND.

MR TSANG POINTED OUT THAT ONE COULD EASILY CONJURE DUMPING AS SOMETHING UNSAVORY AND UNFAIR UNLESS ONE LOOKED CLOSELY INTO ITS DEFINITION AND WHAT IT WAS TAKEN TO MEAN IN PRACTICE.

"ANTI-DUMPING ACTIONS' HARASSMENT EFFECT SINKS IN WITH INITIATION OF AN INVESTIGATION, SOMETIMES EVEN WITH THE RUMOUR OF A CASE ABOUT TO BE FILED.

"THE UNCERTAINTY

CREATED WOULD MAKE IMPORTERS THINK TWICE BEFORE SOURCING FROM THE AREA UNDER INVESTIGATION. THIS MEANS IMPORT COMPETITION COULD BE LIMITED EVEN IF THE INVESTIGATION EVENTUALLY FINDS NO DUMPING OR INJURY.

..

"IN THE MEANTIME, SUFFERED FALLING BUSINESS, INCURRED IN THEIR DEFENCE.

EXPORTERS AND

MANUFACTURERS CONCERNED NOT TO MENTION THE TIME AND EXPENSES

EXPENSES

"SMALL COMPANIES WOULD BE PARTICULARLY HARD HIT. MANY MAY FORGO THE MARKET IN FACE OF THE PROHIBITING TIME AND REQUIRED TO GO THROUGH THE INVESTIGATION, MR TSANG SAID.

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PHONG KONG