Riyadh, Jul 20(Arab News): Indian Ambassador Talmiz Ahmad has said that the controversy over anti-dumping duties (ADD) imposed by India on Saudi polypropylene will not affect growing strategic relations between the two countries.
Ahmad made it categorically clear that the anti-dumping row was “a minor trade matter” that would never strain bilateral relations.
He said the Kingdom and India had trade differences in the past. “Now all kinds of disputes are discussed within the framework of the WTO (World Trade Organization) rules and regulations,” said the ambassador, who was conferred the King Abdul Aziz Medal of First Class by the Kingdom last week for his outstanding contributions to boosting bilateral ties.
Asked about a mutually acceptable solution to the ADD row, Ahmad was very candid in his reply and said some corrective steps should be taken to address the issue.
“Making extreme statements in the local media makes no useful contribution whatsoever,” said Ahmad, while referring to the growing discontent among local business entities.
He said: “There is a deep and abiding commitment at the highest levels in the governments of India and Saudi Arabia to the bilateral relationship … there is no perception in India whatsoever that the issue related to PP will adversely affect our substantial ties, not at all.”
Saudi Arabia has urged the Indian government to lift the anti-dumping tax on its PP exports, saying the measure is in violation of the WTO regulations.
Saudi government agencies and business entities have described the tax on PP exports, which has been in the region of 22 percent, as unreasonable.
“I will suggest to the Saudi side to take a careful look at the order that has been passed by the Indian Customs, Excise and Service Tax Appellate Tribunal, and if needed then corrective measures should be taken immediately, and also the tribunal dealing with the case should be given all facts and documents,” the ambassador said.
“If it is felt that the Saudi case was not effectively argued, then the best possible legal assistance should be obtained.”
Referring to similar disputes among different nations on the WTO platform, he said: “Ours is not the only case. The anti-dumping issue between the Kingdom and India are to be seen within the framework of trade norms and trade rules put in place by the WTO.”
Ahmad said that it was quite logical that Saudi and Indian businessmen would pursue their own interests.
“This is not something you can prevent,” said the diplomat, adding that every company has the right to pursue its own interest and certain Indian companies have filed complaints against PP exports from Saudi Arabia, Oman and Singapore, saying that they have unfair benefits from their respective governments.
He said that the process of investigation is a quasi-judicial process and is neither an administrative matter nor a political one.
According to a notification by the India's Ministry of Finance, the duty tariff on PP exports has been levied for a period of five years from the start of the provisional anti-dumping duty imposed on July 30, 2009.
Major companies including SABIC, ExxonMobil Chemical Asia Pacific, Saudi Yanbu Petrochemical Company and Saudi Polyolefins Company are affected by the anti-dumping duties.
The petition seeking duty on PP from Oman, Saudi Arabia and Singapore was filed by India's Reliance Industries Ltd. (RIL) in 2009. Other domestic producers, including Haldia Petrochemical Corporation Ltd., have been supporting the RIL. PP is used in woven sacks for cement, fertilizers and also film packaging. It also finds application in auto parts, appliances, furniture and house ware.