GCC Office of Technical Secretariat safeguards over SAR 30M in investments: Al-Muhaidib

Faisal Al-Muhaidib, Director of GCC Office of Technical Secretariat to Combat Harmful Practices

The GCC market witnessed dumping practices on several commodities in the first half of this year, including electrical plug products, aluminum panels, sanitary ware, car batteries, glass sheets, and ceramic tiles, Faisal Al-Muhaidib, Director of the GCC Office of the Technical Secretariat to Combat Harmful Practices in International Trade, told Argaam in an interview.

Anti-dumping investigations showed that imports from China and India caused clear, significant damage to Gulf industries related to these products.

Al-Muhaidib explained that the Technical Secretariat Office carried out 20 investigations to protect Gulf industries, leading to the collection of more than SAR 1 billion in fees to combat harmful practices. The funds helped strengthen the protection of domestic industries and prevent potential damage from these practices.

He added that the office succeeded in protecting Gulf investments worth more than SAR 30 billion through rapid and effective intervention to prevent harmful practices that threaten the continuity of these investments in the Gulf market.

Rebar, petrochemicals, ceramics, aluminum, and car battery sectors were the most affected by dumping, Al-Muhaidib also noted.

We asked Al-Muhaidib how the GCC Office of the Technical Secretariat to Combat Harmful Practices in International Trade addresses dumping, and here are his answers.

Q: How does the Technical Secretariat define dumping, and what criteria are used to determine if a good is being dumped?

A: Dumping is the import of a product into the GCC market at a price lower than its normal value in the exporting country under normal trade conditions.

The criteria used to determine dumping include the product being imported at a price lower than its normal value in the country of origin, material damage to the GCC industry, and a causal link between the material damage and the dumping prices.

Q: What domestic and international legal frameworks do GCC countries rely on to combat dumping?

A: The local legal framework is the GCC Common Law on Anti-Dumping, Countervailing Measures, and Safeguard Measures, along with its rules of implementation, while the international framework is the World Trade Organization Anti-Dumping Agreement.

Q: What are the main commodities or materials that were subject to dumping in the GCC market during the first half of the year?

A: Mainly aluminum products, sanitary ware, car batteries, glass sheets, and ceramic tiles.

Q: What are the main countries of origin for these materials, and how do they impact local industries?

A: The countries of origin vary depending on the product, but China and India are the primary sources identified in most investigations. The dumping of imports from these countries has significantly impacted Gulf industries, causing material harm to related sectors.

Q: What actions does the Technical Secretariat take when dumping cases are discovered?

A: The office evaluates the accuracy and sufficiency of the evidence provided in complaints by Gulf industries and prepares a preliminary report. This report is submitted to the Permanent Committee, which determines whether to reject the complaint or accept it for further action. If accepted, the complaint is referred back to the Technical Secretariat Office for registration and investigation, provided the initial evidence and data meet the criteria outlined in the Unified Anti-Dumping Law and its executive regulations.

Q: How are local industries protected without violating the Gulf markets' commitments to the World Trade Organization (WTO)?

A: The Gulf markets are fundamentally open to global trade. As long as international trade does not harm or threaten Gulf industries, they remain open, following free market principles without government interference.

However, when harm or the potential for harm is identified, Gulf industries are protected while ensuring compliance with the Gulf Cooperation Council’s (GCC) commitments to the WTO. This is done through the application of relevant WTO agreements, as well as the GCC Common Law on Anti-Dumping, Countervailing Measures, and Safeguards, along with its executive regulations.

Q: What is the total volume of goods that have been dumped in the Gulf market in recent years?

A: The Technical Secretariat Office initiated 20 investigations into various products to address dumping.

Q: How is the volume of dumping measured for the local market and are certain sectors more affected than others?

A: Dumping is measured by comparing the selling prices in the exporting country with the export prices to GCC countries. No specific sectors are disproportionately affected; all sectors are evaluated equally.

Q: Which sectors are most impacted by dumping in terms of scale and economic value?

A: The most affected sectors include rebar steel, petrochemicals, ceramics, aluminum, and car batteries.

Q: What role has the Technical Secretariat Office played in protecting Gulf industries from harmful trade practices in GCC markets?

A: The Technical Secretariat Office serves as the investigative authority for harmful trade practices across the GCC. It has achieved notable success by conducting 20 investigations, leading to the collection of over SAR 1 billion in anti-dumping duties. These efforts have strengthened the protection of Gulf industries from harmful trade practices within the GCC market.

Q: How has the office contributed to protecting Gulf exports to global markets?

A: The Technical Secretariat Office has defended the interests of Gulf industries by representing them in investigations initiated by countries outside the GCC. In collaboration with GCC authorities, these efforts have safeguarded exports valued at over SAR 4 billion, ensuring their competitiveness and reinforcing their position in global markets.

Q: What are the main benefits these investigations bring to Gulf industries and their workers?

A: These investigations help protect Gulf industries from harmful trade practices and preserve jobs for about 10,028 workers. This contributes to the resilience and sustainability of these industries, promoting growth and stability and attracting investments to the Gulf market.

Q: How have the office's efforts reflected on the protection of Gulf investments?

A: The office's interventions have protected GCC investments exceeding SAR 30 billion by preventing harmful practices that threatened these investments within the Gulf market.

Q: What is the primary objective of these investigations conducted across the entire Gulf market? Is it to promote monopolies?

A: The primary objective is to protect Gulf industries from unfair competition by certain countries. The Gulf market remains open to all products, including those from countries subject to duties and from those not affected by such measures. The market is inclusive, and no monopolies are allowed.