Unraveling the simple truth: Anti-Dumping Duties on Polyester Filament Yarn with an effort to monopolize the market

KARACHI: Sohail Nisar, the Senior Vice Chairman of the Pakistan Yarn Merchants Association (PYMA) and executive committee, have voiced their concerns about the imposition of anti-dumping duties on imported Polyester Filament Yarn (PFY) in Pakistan, emphasizing the intricate nature of the issue. At its core, the situation revolves around finding a delicate equilibrium between safeguarding the domestic industry and catering to the robust demand for PFY in the textile sector. There is a risk of local producers attempting to monopolize the market, potentially leading to inflated textile prices and exacerbating inflationary challenges.

In a statement, Sohail Nisar pointed out that the demand for PFY in Pakistan surpasses the local production capacity, reaching approximately 400,000 MT annually. To bridge this substantial supply-demand gap, imports become necessary, making it imperative to acknowledge this fundamental aspect of the market dynamics.

“Despite prolonged anti-dumping investigations, the domestic industry has struggled to substantiate its claims adequately. The National Tariff Commission imposed anti-dumping duties; however, appellate forums have twice deemed these duties unlawful. Moreover, the superior courts of Pakistan have consistently scrutinized the imposition of these duties, questioning their alignment with the trade remedy regime. The industry’s grievances about suffering due to imports clash with their increasing profits, raising questions that merit careful consideration. A prudent approach is needed to avoid unnecessary legal battles with PFY users and importers.”

Executive committee added that the introduction of regulatory duties (RD) alongside anti-dumping duties (ADD) inadvertently impacted Small and Medium Enterprises (SMEs) in the textile sector. RD was applied to various PFY types, including those no longer under ADD scrutiny by the National Tariff Commission (NTC). The widespread application of RD to all types of PFY and countries not involved in ADD investigations has counterproductively affected local businesses, sparking debates about its necessity within a cascading system.

Nisar emphasized that a critical reassessment of these measures is essential to ensure fairness, competitiveness, and efficiency in the industry. He expressed hope that government departments such as the National Tariff Commission (NTC) and the Ministry of Commerce will consider the future of the textile industry holistically, prioritizing the overall well-being of the industry over the interests of a select few local producers.