From 2012 to 2015, Pakistan proposed anti-dumping investigations on my country’s polyester staple fiber four times
In recent years, Pakistan has frequently filed applications for anti-dumping investigations into my country’s polyester staple fiber. On April 22, 2015, the Pakistan Customs Commission issued an announcement announcing the launch of an anti-dumping investigation into China’s domestically produced polyester staple fiber (PSF). The investigation period will be throughout 2014, and the damage investigation period will be from 2012 to 2014.
According to customs data, my country’s exports of polyester staple fiber to Pakistan in 2014 reached nearly US$150 million. According to Pakistan’s requirements, relevant stakeholders must register to respond to the lawsuit within 10 days from the date of announcement, and submit defense opinions within 45 days. Due to the tight time limit for responding to the lawsuit, the China Chamber of Commerce for Import and Export of Textile Products also announced that export companies that are willing to respond to the lawsuit should immediately prepare to respond to the lawsuit and contact the China Chamber of Commerce for Import and Export of Textile Products for specific case details.
This is not the first time that Pakistan has filed an anti-dumping investigation application against my country’s polyester staple fiber. Just before that, in May 2014, according to a notification from the Pakistan Customs Commission, Pakistan’s domestic industry submitted an application to the Pakistani investigation agency, requesting to launch an anti-dumping investigation on polyester staple fiber imported from China, involving products under Pakistan Customs tariff number 55032010.
Public information shows that between 2012 and 2015, Pakistan filed anti-dumping investigation applications for polyester staple fiber against my country every year. So, why does Pakistan frequently file anti-dumping investigation applications against my country? What kind of trade disputes are there between my country and Pakistan? Perhaps it is easier to find the answer by analyzing the current situation of Pakistan’s domestic polyester staple fiber industry.
Pakistan’s domestic production capacity supply is insufficient
Polyester staple fiber is the main fiber variety produced and consumed in Pakistan, and is the main raw material for blending. Its annual production capacity reached 700,000 tons five years ago, and its share of fiber use is on par with the world level. Of course, compared with my country, Pakistan’s polyester short fiber production capacity is very small, but compared with other countries, Pakistan’s polyester short fiber production capacity is relatively large.
The proportion of Pakistan’s other polyester fiber consumption in the total share is somewhat unbalanced compared to the world level, mainly because other varieties do not have a prominent position in polyester staple fiber. The annual growth rate of Pakistan’s polyester fiber demand can reach 10%. Precisely because In recent years, Pakistan’s domestic downstream companies have strong demand for polyester staple fiber, leading Pakistani companies to invest US$80 million to establish the first polyester chip factory in Pakistan.
In Pakistan, due to the rapid growth of the spinning industry, the demand for polyester fiber has increased. The country’s demand for such products is growing every year. In the past few years, Pakistan’s polyester staple fiber, polyester chips, and upstream PTA and MEG production quantities were limited. Some varieties did not even have large production capacity at all. They were unable to meet the actual needs of local downstream enterprises and had to import the products from other countries. products. In particular, the upstream raw materials for polyester fiber all rely on imports from India, South Korea, Singapore, the Middle East and other countries and regions. In mid-2007, Pakistan’s polyester staple fiber supply was in short supply. At that time, rising prices had a serious impact on its domestic spinning industry. There is even news that some domestic polyester staple fiber factories in Pakistan want to increase product prices.
It can be said that Pakistan’s import volume of polyester yarn and cotton fabrics has been growing. However, there has been no significant improvement in recent years. Pakistan’s dependence on foreign countries for polyester yarn is still relatively high. Due to Pakistan’s uninterrupted electricity and The energy crisis has severely damaged the country’s domestic production. Therefore, Pakistan’s imports of polyester yarn and cotton fabrics have increased in quantity.
The head of the Pakistan Textile Factory Association once said that if the increase in imports can drive an increase in domestic demand in the country without reducing the share of the domestic textile industry, then they welcome it. However, due to frequent power outages and natural gas shortages in Pakistan, polyester yarn imports have surged and domestic production has decreased, making Pakistan’s domestic manufacturers less competitive. Of the more than 20 polyester yarn manufacturers in Pakistan, only three are still in business. The production of polyester yarn is difficult to meet the domestic market demand, making the share of Pakistan’s textile blended products also insignificant.
Squeezed by rival India
In fact, in recent years, Pakistan has not only frequently launched anti-dumping investigations on chemical fibers and textiles imported from China, but has also frequently raised the banner of trade protection against related products imported from other countries.
In February 2015, the Pakistani industry filed an application for anti-dumping investigation on textiles imported from India. The Pakistan Textile Manufacturers Association (APTMA) stated that it will apply to the National Tariff Commission (NTC) of Pakistan for an anti-dumping investigation on textiles imported from India. Data show that in 2014, India exported 26,000 tons of cotton yarn to Pakistan, a year-on-year increase of 100%.
The Pakistan Textile Mills Association (APTMA) has urged its government to implement trade protection measures on imported yarn from India, requiring the government to take targeted reciprocal measures to compete with the international market by providing a level playing field, and through the Ministry of Textiles, requested Immediately implement trade protection measures on yarn imported from India to Pakistan to stop consuming the competitiveness of the domestic textile industry.
India is Pakistan’s biggest competitor in the international textile field. Pakistan’s export market has grown slowly amid India’s aggressive sales offensive. Last year, the Pakistani rupee appreciated by 18%. The impact of the appreciation further prompted the Indian government to increase subsidies for domestic textile exports, including a 3% subsidy on the export amount, a 5% reduction in interest payments on capital expenditures, and an electricity price of 1 rupee. subsidies and other incentives. In the past three years, data shows that Indian yarn exports to Pakistan have been increasing day by day, with imports of Indian yarn increasing from 4,927 tons to 25,839 tons.
A number of policies have been introduced to benefit exports
This is a question worthy of serious consideration. Because India has built a “city wall”, Pakistani yarn is not exported to India in large quantities. In its letter to the federal ministries of finance and commerce, APTMA requested that appropriate measures be taken in this matter, which involves the survival of Pakistan’s largest industry. In light of the current crisis, they have issued an urgent call for immediate action.
During the five years from 2009 to 2014, the quantity of polyester yarn imported into Pakistan increased sharply, increasing many times, which also indicates that this product is very popular in Pakistan. Due to the strengthening of the export of series products of Pakistan’s downstream textile enterprises, the number of textile exports has increased. In March 2015, the Pakistani government stated that the “Textile Policy 2014~2019” that had been implemented for one year had achieved initial results. By formulating a series of incentive measures, the textile industry is expected to achieve the goal of doubling exports and creating 3 million jobs in 2019.
It is reported that the Pakistani government will provide approximately 64.1 billion rupees in financial assistance to the textile industry, involving tax rebates, tax exemptions, loan subsidies, and development subsidies. Among them, 40.6 billion rupees will be used for tax rebates, technology upgrades, brand development, etc.; 23.5 billion rupees will be used for technology development, product exhibitions, building world textile centers, textile cities, incubation centers, and setting up textile awards, etc.; the discount interest rate will be used from the current 7.5% It will be reduced by another 2% on the basis of; long-term loans to the value-added sector of the textile industry will be facilitated, with an interest rate of 9% and a period of 3 to 10 years; exporters whose export volume increases by 10% compared with the previous year will enjoy local tax refund benefits, of which The tax rebate for clothing is 4%, the tax rebate for miscellaneous clothing is 2%, and the tax rebate for processed fabrics is 1%; the tax exemption policy for imported textile machinery and equipment will be extended for another two years, and the preferential policy for upgrading and renovation funds will also be extended. In addition, the Pakistani government will also establish a joint committee to ensure energy supply for the textile industry.
The establishment of an industrial alliance between China and Pakistan can avoid trade friction
According to Xinhuanet, Pakistan’s power shortage in summer can sometimes reach 5,000 megawatts. Not only is production power unsatisfactory, but residents’ daily power is often difficult to guarantee. During peak power consumption in summer, power outages in the capital Islamabad can last up to 12 hours a day, and in most rural areas, power outages can last more than 18 hours a day.
It is worth mentioning that cooperation between my country and Pakistan in areas such as electric power and energy has become the highlight of cooperation between the two countries. For Pakistan, which is developing its economy rapidly, it has long been constrained by severe energy shortages, especially the shortage of electricity. my country and its energy construction will bring better social and economic benefits to Pakistan. After all, the textile industry is an important pillar of Pakistan’s economy. Punjab’s textile industry accounts for more than 70% of the country’s share. In the past five years, it has been affected by insufficient power supply, and Punjab’s textile industry production capacity has dropped by 40%. . Assuming sufficient power supply, the production capacity of the textile industry will not drop significantly. As long as the production capacity of the textile industry can be maintained at normal levels, the demand for polyester fiber and other raw materials will still show a sharp increase, and Pakistan’s economy will also see a big turnaround. .
It is expected that after 2016, the quantity of polyester yarn imported into Pakistan will still show an upward trend, and the quantity of downstream textile processing in Pakistan will also show a growth trend. When Pakistan’s energy crisis is resolved, some textile factories in Pakistan’s Punjab and other places will no longer shut down and a large number of workers will lose their jobs. Then the exports of Pakistan’s textile industry will not suffer losses calculated in units of “billion dollars” .
At present, large quantities of imported low-priced polyester and cotton yarn are impacting Pakistan’s local industrial interests. Some people in the industry have suggested that assuming that my country’s powerful polyester companies can form an industrial alliance with Pakistan, that is to say, they can invest in Pakistan to build polyester projects alone or jointly expand polyester fiber production capacity locally with some powerful counterparts in Pakistan. In this way, my country The production capacity of some polyester manufacturers has been moved to Pakistan. They can directly produce and sell locally, digesting the polyester fiber output produced by the effective production capacity to meet the actual needs of local downstream enterprises. In this way, there will be no anti-dumping problem.
