Mumbai: With no additional duty to be paid, Indian cotton yarn exporters can now heave a sigh of relief, as the South American country Peru has decided to drop duty on import of cotton yarn into the country, an industry official said.
The efforts made by the Cotton Textiles Export Promotion Council (Texprocil) and diplomacy by the Indian Embassy in Peru have led to the Peruvian authorities deciding not to impose any safeguard duty on import of cotton yarn into that country. Shipments of cotton yarn from India would now continue without any encumbrances.
Being the largest supplier of cotton yarn to Peru with a share of over 80% in total Peruvian cotton yarn imports, Indian cotton yarn exports would have been severely impacted in case the safeguard duties were imposed, Texprocil’s chairman, V.S. Velayutham, said in a statement.
Velayutham hoped with no additional duty to be paid, Indian cotton yarn exporters can now heave a sigh of relief.
Exports of cotton yarn from India reached a level of $94.45 million during 2008, recording an impressive growth of 73.62%.
On account of the safeguard investigations, imports of cotton yarn from India during January-June 2009 recorded a sharp decline, reaching a level of $24.79 million.
It may be recalled that aggrieved by the economic downturn, cotton yarn producers in Peru represented by SNI (Sociedad Nacional de Industrias) filed a complaint with the National Institute of Defense of Competition and Protection to the Intellectual Property (Indecopi) claiming that rising imports of cotton yarn were causing a threat to the domestic cotton yarn producers in Peru.
They also requested impositing safeguard duties on imports of cotton yarn from all countries, including India.
On behalf of the Indian cotton yarn industry as well as exporters of cotton yarn to Peru, Texprocil made itself known as an interested party in the safeguard investigation initiated under the WTO Agreement on Safeguards and participated in the proceedings.
The excellent commercial diplomacy undertaken by the Indian embassy in Peru and the effective arguments made by Texprocil led to the Peruvian investigating authority dropping the proceedings without imposing any safeguard duty, the statement said.
“The excellent support extended to us by the ministry of textiles and ministry of commerce enabled us to take up the cause of Indian cotton yarn exporters before the Peruvian authorities,” Velayutham said.