The Indonesian Pulp and Paper Association (APKI) has protested to the Malaysian government for extending its anti-dumping duty for imported newsprint paper from Indonesia, South Korea, the Philippines, Canada and the United States.
According to APKI chairman M. Mansur, as quoted by Antara on Thursday, Malaysia should have revoked the anti-dumping policy on Sept. 25 last year after slapping on a safeguard duty since Sept. 26, 2003.
APKI argued the anti-dumping policy could only be applied for five years based on the existing regulations of the World Trade Organization (WTO).
However, Malaysia eventually decided to extend the policy and relaunch an investigation into the dumping allegation, which may take six months until March.
According to Mansur, the WTO agreement also mentioned that should there be any need for re-investigation, the process must be carried out before the duty policy application period ends.
"The investigation must also prove the dumping activity caused the importing country to suffer losses," Mansur said. However, he added, the association had not found so far any evidence of losses suffered by the Malaysian paper industry.
"We are very disappointed with the decision, which is not in line with the WTO regulations. Malaysia's action is against the WTO ruling, and against the spirit of free trade. It's also against the ASEAN solidarity principle," said Mansur.
According to APKI, the only newsprint paper producer in Malayisa, Malaysian Newsprint Industries Sdn Bhd (MNI), is so far unable to meet targeted needs for newsprint paper supply.
"We cannot find any losses suffered by MNI, thus the Malaysian ministry has no right to perform a re-investigation," Mansur said.
Currently, Malaysia applies 5.39 percent as the lowest anti-dumping duty for newsprint paper and 33.14 percent for the highest.
From 2002 to 2003, Indonesia's newsprint paper exports to Malaysia reached around 55,700 tons, while from 2007 to 2008 exports barely reached 7.000 tons.
"The duty policy has caused the nation's newsprint paper exports to Malaysia to drop by 88 percent," said Mansur, adding that during the same period Malaysia's imports of the same products from Europe, China and Japan jumped by 200 percent. (dis)
