Logo of Phnom Penh Post newspaper Phnom Penh Post - Laos approves new law to safeguard local products

Laos approves new law to safeguard local products

Content image - Phnom Penh Post

Laos approves new law to safeguard local products

Laos’ National Assembly (NA) on Friday approved a new law relating to anti-dumping and countervailing duties in order to protect domestic products from unfair imports.

Laos’ Minister of Industry and Commerce Khemmani Pholsena (pictured, Vientiane Times) told the assembly’s ongoing session on Friday that the enactment of the law was part of Laos’ efforts to fulfil its obligations as a member of the World Trade Organisation (WTO).

She said if Laos does not have the law, it cannot apply anti-dumping and countervailing duty measures against the unfairly imported products.

According to the WTO, if a company exports a product at a price lower than it generally charges in its home market, it is said to be dumping the product.

WTO agreements do not regulate the actions of companies engaged in dumping. However, they allow governments to act against dumping where there is a genuine injury to the competing domestic industry.

Before reacting or applying response measures, the government has to be able to show that dumping is taking place and how much the dumping threatens the domestic industry and economy.

The WTO says a member country can use the organisation’s dispute settlement procedure to seek the removal of the subsidy or the elimination of its adverse effects.

NA members agreed that with the law, Laos could launch its own investigations and decide to charge extra duty on subsidised imports if those imported products were found to be damaging to local producers.

The law will serve as a legal instrument for the Lao government to take response measures against dumping and impose subsidy duties to safeguard domestic producers from unfairly imported products.

It will create confidence for entrepreneurs and investors operating in Laos as their rights and legitimate interests will be protected.

Khemmani said the WTO reported that between January 1, 1995, and December 31, 2017, 51 countries applied anti-dumping measures in 3,604 cases. India implemented the most measures followed by the US and the EU. Indonesia, Thailand, Malaysia, the Philippines and Vietnam applied the measures.

The minister also said 22 countries had applied countervailing measures in 257 cases. The US initiated the most measures followed by the EU and Canada. No country in Asean implemented the measures.

During the preparation period to join the WTO in 2013, Laos enacted and revised more than 90 laws and regulations associated with international trade. VIENTIANE TIMES/ANN

MOST VIEWED

  • Virus tops 84 with new cases in S’ville

    The Ministry of Health on Sunday night confirmed another 31 cases of coronavirus infections, bringing the Kingdom’s total to 84 and it highest daily tally. There have been no fatalities thus far. The latest cases were found in 29 French tourists and their two Cambodian tour guides

  • Kingdom’s virus toll tops 84, Cambodians in Thailand rush home

    The Ministry of Health on Sunday night confirmed another 31 cases of coronavirus infections, bringing the Kingdom’s total to 84 and its highest daily tally. There have been no fatalities thus far. The latest cases were found in 29 French tourists and their two Cambodian tour guides

  • NBC calls for cashless payments

    The National Bank of Cambodia (NBC) has urged government ministries, financial institutions and the public to conduct cashless payments via electronic systems where possible to combat the spread of Covid-19. “To contribute to the prevention of Covid-19, the National Bank of Cambodia encourages financial institutions

  • CEO held for fraud in Siem Reap

    Over 200 individuals gathered in front of the Siem Reap Provincial Court last week to ask that Dim Suonnath, the CEO of a real estate company being held for fraud, take responsibility for compensating some 2,000 residents who invested with him. The request was denied. Suonnath responded

  • Ministry calls for home schooling

    Minister of Education, Youth and Sport, Hang Chuon Naron appealed to parents of students to provide home education in a proper environment and help them obtain more learning materials. The ministry also allowed schools to take a premature vacation after several people tested positive for

  • Cross-border deal inked to maintain trade amid Covid-19

    Cambodia and Vietnam have agreed to allow cargo trailers to enter the common Bavet-Moc Bai border, located in Cambodia’ Svay Rieng province (Bavet) and Vietnam’s Tay Ninh province (Moc Bai) after movement restrictions were enforced to prevent a Covid-19 outbreak. The decision was made