India in Talks with Egypt on Cotton Yarn Import Duty

India has requested consultations with Egypt as per the provisions of the World Trade Organization (WTO) Agreement on Safeguards, in response to Egypt's imposition of special import duties on Indian cotton yarn.

In December 2011, Egypt imposed a specific duty of 53 cents per kilogram on cotton yarn imported from India, claiming that rising imports form India were harming its local industry.

Mr. Siddhartha Rajagopal, Executive Director - The Cotton Textiles Export Promotion Council (Texprocil) told fibre2fashion, "India has requested for consultations within the relevant provisions of the WTO Agreement on Safeguards. Under Article 12.3 of the WTO Agreement, any country proposing to apply safeguard measures (in this case Egypt) has to provide adequate opportunity for prior consultation with members having a substantial interest as exporters of the product concerned (like India).

"Egypt has applied provisional safeguard measures under Article 6 of the WTO Agreement and imposed a duty of around 53 cents per kg of Indian cotton yarn. It has also held a Personal Hearing in the matter under Article 3.1 of the WTO Agreement on Safeguards on February 16, 2012. India has made detailed submission in the matter asserting that there is no case for imposing any safeguard duties by Egypt," he informs.