Stakeholders of the jute sector have urged the government to raise the issue of anti-dumping duty (ADD) to the World Trade Organization (WTO) as India has turned a blind eye to Bangladesh’s request to lift the ban on jute goods in the last five years, sources said
In January 2017, the Directorate General of Trade Remedies (DGTR) of India imposed ADD on Bangladesh's jute yarns, hessians and sacking bags, ranging between $19.30 to $351.72 per ton for a period of five years.
The sunset clause is supposed to remain effective till January 31, 2022. Unless the Indian government extends the period of the clause, it will help Bangladesh boost the export of jute goods to the neighbouring country.
But India started sunset review of import of Bangladesh jute products on July 9, 2021, to enhance the ADD for another five years.
Chairman of Bangladesh Jute Mills Association (BJMA) Mohammad Mahbubur Rahman Patwari has urged the government to raise the issue before the World Trade Organization (WTO) to get a better result.
Expressing deep concern at the prevailing situation, the BJMA president said: “The ADD has hit the jute industry of Bangladesh, as export volume to India dropped 70%. A good number of Bangladesh jute mills have cut their production and a number of mills have closed down in the meantime.”
“The association believes if the Bangladesh government lodges an appeal to the WTO before completion of the sunset review, Bangladesh can get a better result. But an effective action is yet to be seen,” the president lamented.
According to the Export Promotion Bureau, the country exported $1,096 million worth of goods to India in the 2019-2020 fiscal year. Of the amount, $157 million came from jute and jute products. Around 12% of Bangladesh's jute products are exported to India.
A Commerce Ministry official told Dhaka Tribune: “Dhaka has, on several occasions, urged New Delhi to lift the anti-dumping duty slapped on Bangladeshi jute products as India started sunset review on import of our jute products to raise the duration of ADD up to next five years.”
Additional Secretary and Director General of WTO Cell of the Commerce Ministry Md Hafizur Rahman said: “India still imposes ADD on the export of Bangladeshi jute products. Dhaka has requested New Delhi to lift the ADD on goods to boost export to the neighbouring country. The commerce ministry of Bangladesh has been in negotiations with the Directorate General of Trade Remedies (DGTR) of India to resolve the issue since the imposition of ADD on January 5, 2017.”
“Until now, Bangladesh has not raised the issue of ADD to the World Trade Organisation (WTO),” he added.
Meanwhile, the Ministry of Commerce of Bangladesh has written to the Indian government, asking for a withdrawal of the ADD slapped on Bangladeshi jute products.
The letter has been sent in the context of the Indian side's "assurance of a review" in response to Bangladesh's request to reconsider the anti-dumping duty at a commerce secretary-level meeting held between the two countries in March last year.
The commerce ministry sent the letter through the foreign ministry, but has not received an answer from India yet, Hafizur Rahman further said.
Moreover, the Directorate General of Trade Remedies (DGTR) of India ordered an investigation into the sunset review clause of duty imposition on import of jute products from Bangladesh and Nepal following complaints from the jute industry, an IJMA official said last year.
The DGTR, which is under the Ministry of Commerce and Industry, functions as an integrated single-window agency for providing a comprehensive and swift trade defence mechanism in India.
Indian Jute Mills Association (IJMA) had repeatedly complained about the dumping and illegal import of jute products from Bangladesh and Nepal, misusing the SAFTA treaty and hurting Indian farmers and jute mills.
"The DGTR has initiated an investigation on the sunset clause of duties imposed by India on jute products exports from Bangladesh after IJMA raised concerns of damage to domestic industry and farmers interests," IJMA Chairman Raghavendra Gupta said.
Since the imposition of anti-dumping duty (ADD) in January 2017 by the Indian government, the quantum of subsidy has been increased by Bangladesh to nullify any hurdle to their trade, he added.
"The jute industry in India was forced to file for circumvention duty when importers began to import sacking cloth instead of sacking bags to evade the ADD," Gupta further said.