It is essential for exporters to cooperate with authorities when they become involved in anti-dumping investigations in overseas markets, an expert from a leading Indian law firm said during a recent seminar in Tokyo.
"When there is an anti-dumping action, there must be cooperation. If you don't cooperate (with the investigation), the authorities can determine that as an adverse fact and make a decision against the exporter" accused of dumping products in the overseas markets, said R. Parthasarathy, a senior partner of Lakshmikumaran & Sridharan (L&S).
Parthasarathy was speaking on the potential problems and risks involved in cross-border trade and dispute-handling mechanisms under World Trade Organization rules during a seminar organized by the Keizai Koho Center on Jan. 31.
In one example, a Japanese firm he was representing appealed the Indian government's recommendation for imposition of anti-dumping duties on its exports to India. But that appeal was turned down because some of the traders involved in the transactions failed to provide relevant data on export prices, he said.
In a separate case involving another Japanese firm, the Indian authorities ruled that dumping had taken place but no anti-dumping duties were imposed because, based on data provided, it was determined that no material injury had been caused to local producers of the same product, he pointed out.
"The results may vary based on the facts in each case, but more importantly, when there is an anti-dumping investigation, there must be cooperation," he said.