International trade frictions have in the recent years been a significant source of risks for Chinese chemical fiber manufacturers.
A recent example is that the US imposed duties on polyester fibers from China in May 2007. Earlier from 2002 to late 2006, based on statistic figures, chemical fiber products encountered 10 antidumping prosecutions in overseas countries and regions, involving six categories of products such as polyester chips, polyester cut fiber, polyester filament, polyester elastic yarn, viscose filament yarn and polyamide filament. Direct downstream products of chemical fiber encountered two antidumping prosecutions in overseas countries and regions, including polyester filament fabrics and polyester cord fabrics. The above 12 cases exceeded US$900 in total value during the investigation period. Downstream chemical fiber suppliers in China were also affected.
So a key problem for Chinese chemical fiber producers currently is how to ease trade frictions.
Understand relevant WTO regulations
In an article published in the December 2007/January 2008 issue of China Textile & Apparel, published by Adsale Publishing Ltd, Vice Secretary General Zheng Junlin of the China Chemical Fibers Association, advises fellows of the industry to understand the relevant WTO (World Trade Organization) regulations, thus improving their capacity to make proper use of the dispute settlement mechanism in the WTO.
Respond actively
Whenever there are trade disputes, they should also take active measures. Mr Zheng explains that currently, many Chinese enterprises lack enthusiasm to respond to antidumping prosecutions, and in many cases, only enterprises with large export volumes have the initiative to participate in antidumping investigations.
He adds that Chinese enterprises, paying relatively more attention to antidumping investigations from developed countries and regions such as the EU and USA, rarely take part in antidumping investigations from developing countries and regions, say India, Turkey and South America. This may encourage these countries to implement trade protectionism, and in turn aggravate international trade environment for China's chemical fiber textiles, Mr Zheng warns.
Avoid chaotic competition
Moreover, the industry is suggested to exert self-discipline and maintain proper export order, and avoid low-price competition. Export-oriented enterprises should also intensify product research and development, raise additional value of their products, intensify exchange and cooperation, and avoid chaotic competition to minimize potential frictions in international trade.
Characteristics of international trade disputes that Chinese chemical fiber industry faces
1. The EU antidumping cases not only involve high monetary values but also have a strong demonstrative effect.
2. The trend of trade protectionism is fast spreading to developing countries.
3. Trade protectionism is realized in different ways, and new ways are emerging.
4. The EU has started anti-absorption and Anti-circumvention investigations. |
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