The National Chamber of Exporters (NCE) has welcomed the much-awaited Anti-dumping, Countervailing and Safeguard Measures Acts which were passed in parliament on March 7.
The enactment of these two Acts were long over due in the case of Sri Lanka, since over 30 countries, developed and developing, including India, Pakistan and Bangladesh which are competitors of Sri Lanka related to international trade in the South Asian region had already enacted such domestic legislation.
The Chamber is particularly pleased with the enactment of this legislation since local industry has been making representations in the past that imports are entering the country in some instances at lower prices than the normal value, a media release from the organisation said.
In this context with the implementation of the trade liberalization policies of the Government, and particularly the ongoing negotiations of the government to enter into Free Trade Agreements and Economic Partnership Agreements with several countries including large economies such as China and India and also with Thailand, Malaysia and Bangladesh, which are in the pipe line, local entrepreneurs have been particularly concerned regarding possible surges in imports which could cause damage to local enterprises; in addition to the Free Trade Agreements that have been already signed with India, Pakistan, and Singapore.
The enactment of this legislation will provide safe guards to local enterprises in regard to imported products which are deliberately priced below their normal value, and some times below the cost of production of the exporting countries, to drive out competition from local enterprises which produce the same or similar products.
Similarly, the legislation provides safeguards to local enterprises in respect of imported products which have received excessive and unfair subsidies in the producing country.
The Safeguard Measures Act also provides for the protection of domestic enterprises from sudden surges in imports which could cause injury to domestic enterprises However, as stated in a press release of the Ministry of Strategy Development and International Trade these new laws are not aimed at providing blanket protectionism to domestic industry, but rather a credible set of remedial measures in the event of injury caused to domestic industry.
Therefore, their primary purpose is to ensure fair competition and to provide domestic industry a level playing field. Dumping is often mistaken to mean cheap or low-priced imports.
To made the implementation process of the enacted legislation productive and beneficial to local enterprises, while conforming to international trading practices, the chamber is of the view that domestic industry and entrepreneurs, especially those engaged in SMEs, should be educated on the assessment of any damage to local enterprises by collating accurate information.For this purpose the Chamber suggests the conduct of suitable Forums or Workshops to educate local entrepreneurs.