Saudi urges India to lift 'unreasonable' anti-dumping tax

Saudi Export Development Center's (SEDC) executive council chairman Abdul Rahman Al-Zamil described the 22 per cent tax as "unreasonable," and urged New Delhi reconsider the decision in the light of the strategic trade relations between the two countries.

According to Al-Zamil, India imposed anti-dumping taxes on Saudi polypropylene exports, saying it had cheaper feedstock.

"The availability of cheap feedstock in the Kingdom is quite natural as a result of abundant local gas supply and the location of petrochemical plants closer to gas pipelines," he said, adding that India took the measure after it had failed in its previous attempts to impose anti-dumping tax on Saudi products as a result of their competitive prices in Indian market.

"During WTO talks the Kingdom had proved that Saudi feedstock prices were fixed on a commercial basis with gas producers taking a reasonable profit. All WTO members, including India, have accepted this point," Al-Zamil said.

"India has signed the WTO agreement. So the Indian argument has no basis," he said.
Al-Zamil pointed out that Saudi non-oil exports to India were valued at only SR180 million compared to huge Indian exports to the Kingdom.

"Most Indian products are exempted from customs duty while some products pay a nominal five per cent tariff," Al-Zamil said.

The chairman said that Saudi Arabia had not imposed any customs duty on Indian products citing dumping despite the presence of potential reasons because of its desire to strengthen bilateral relations.