Anti-dumping law passed in United Arab Emirates

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A new law was passed by the Federal National Council in United Arab Emirates (UAE) to protect domestic products from imports which are sold for less than what is fair market value.

The anti-dumping law will add indirect taxes to correct prices and allow UAE companies to sue over such unfair practices. This law is applied to products imported from countries outside the Gulf Cooperation Council (GCC).

The aim is to set standards for fair competition between local and foreign products and increase local revenues through fees, which could be imposed on such imported products.

These imported products are subsidised by the country exporting them, and can be sold at prices lower than those for domestic products.

The Minister of Economy will fight against dumping

At the Federal National Council (FNC) session on Tuesday, Sultan Al Mansouri, the Minister of Economy, declared that his ministry could investigate cases related with dumping.

Al Mansouri said the law allows the Government to impose countervailing duties to counteract artificially low prices that are a result of subsidies. Fighting against dumping is a priority to protect local markets, and the countries that use dumping in their commercial practices will have to face the consequences.

GCC countries are bound by a law to fight dumping

Al Mansouri stated that the six GCC countries are bound by a law issued in 2010 to fight against dumping. The UAE also signed an anti-dumping deal with the World Trade Organisation (WTO) in 1997.

The minister also added that GCC countries are investigating offenders to protect new and growing industries. These Gulf countries depend a lot on oil but they want to diversify their economies by creating their own industrial platforms.

Cheap imported goods have destroyed many local industries, thus, the right legislation is extremely important to fight against this and protect local economies.

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