Revisiting antidumping laws

This is in regard to the reported APTMA’s statement on the levy of antidumping duties by National Tariff Commission (NTC) against Chinese PSF imports and the increase in prices of PSF by individual local PSF manufacturers.

Drawing linkages between two unrelated processes is an obvious attempt to confuse the issue. The actual fact is that prices of PTA, a key raw material for PSF, have risen sharply by 18-26 per cent globally and across the region in just the last three weeks. This has had a knockout effect on prices of PSF not just in the domestic market but on a regional and global level as a whole.

Being an international market phenomenon, the price hike is beyond the control of the domestic PSF industry. Attributing cartelisation and monopolistic behaviour to local PSF manufacturers is not correct.

APTMA has tried to label the Antidumping Ordinance as a protectionist tool and has accused the NTC of working against the public interest. It has been the experience of the domestic PSF manufacturers that NTC takes into account the views of all interested parties (including exporters, importers and users of the dumped products, i.e. APTMA members) during the course of the antidumping proceedings.

After a comprehensive, detailed, investigative work, the methodology of which is transparent and in compliance with the WTO guidelines, the NTC makes its determination based on injury caused to the domestic industry by unfair trade practices of the foreign manufacturers.

It is a lengthy legal process which affords opportunities to the stakeholders to present their arguments. APTMA does not have any rational arguments based on the domestic and international law. If only APTMA spends more of its time and energy on productive activities instead of accusing others of misconduct, the industry would be in a much better place today.

Polyester Staple Fibre

Manufacturers Group

Lahore

Healthcare and drug prices

This is with reference to Ms Afshan Subohi’s article ‘Healthcare and drug price’ which appeared in Dawn on February 2, 2009.

Nothing works in vacuum and pharmaceuticals too function optimally. When the healthcare system, they are part of, has its fundamental requirements fulfilled through other avenues and auspices under various state and non-state actors; and an effective co-operation exists between the relevant organisations, guided by a well-thought out long-term health policy that acts as the beacon and benchmark of all stakeholders.

The national health budget FY2008-09 was Rs19 billion which is only 0.8 per cent of the total federal budget and falls short of the 15 per cent as suggested by WHO. With a huge gaping hole in our national health armour, we are at the mercy of an inadequate and antiquated health system..

We suggest to Ms Subohi to look at the regional prices, progress and the industry. In a small country like Bangladesh, there are more companies than in Pakistan. The fact is that the government spends only 0.8 per cent of GDP on health while Algeria spends almost nine per cent of GDP on health, Bangladesh and Sri Lanka about four per cent.

The total export of drugs from Pakistan is $100 million including that of the medical devices. While a small country like Jordan exports $900 of drugs to the US and Europe because the prices of drugs are about 5-10 times higher than they are in Pakistan.

One can only sympathise with the writer’s frustration at the state of affairs in the national economy, social despondency and the rising cost of living but she needs to be impartial and free of bias.

The media has always made a scapegoat out of the pharma industry and perhaps this has served interest of many and those who never took the responsibility of raising the national health budgets. No wonder, the health budget today is a miniscule 0.8 per cent and haunts us all with a deteriorating national health standards; and the stakeholders are at each others throats with the real culprit safely enjoying the show, with no fear of persecution from anyone including the media.

Abdur Razzaque

Secretay General, PPMA

Karachi