Vietnamese authorities Tuesday criticized India’s decision to impose anti-dumping duties on Vietnamese textiles.
“This decision is unfriendly and unreasonable,” said Nguyen Thanh Bien, Vietnam’s deputy minister of trade and industry.
India on Friday imposed anti-dumping duties on thread and fabrics imported from China, Thailand and Vietnam.
According to Nguyen Duc Thanh, deputy director of Vietnam’s Competitiveness Administration, the initial anti-dumping tariff on Vietnamese thread and fabrics is 16.32 percent. The tariff is based on preliminary findings by Indian authorities that Vietnamese fabrics were being sold 16.32 percent below cost.
The current level of anti-dumping duties for Vietnam, China and Thailand will remain in force until September 25, 2009, when India will complete its investigation process and decide to cancel, lower or raise the tariffs.
Thanh said Vietnamese textile companies are small- and medium-sized, and lack the needed capital to dump goods below cost in order to gain market share.
“Vietnamese companies cannot dump their products,” he said.
Thanh said several countries were making use of “trade remedies” allowed under WTO regulations when imports are found to be sold below cost or to cause sudden harm to domestic industries.
Vietnamese textiles have a market share of just over 3 percent in India.
World leaders warned in recent weeks that the global economic crisis could lead to a resurgence of protectionist trade measures. International financial institutions warned last month that such measures risk exacerbating the economic slowdown.