Feedback Here

fbook  tweeter  linkin YouTube
Global contents also translated in Chinese

Dumping of Chinese garments in Peru has devastating effect

Dumping of Chinese textiles into Peru has threatened hundreds of thousands of jobs in Gamarra, Lima’s historic garment district. Over 200,000 people have lost their jobs while another 400,000 people are at risk of losing their mode of employment in the garment district located in La Victoria.

Peru’s clothing manufacturers cannot compete with cheap Chinese imports. This is because they allege that they are being unfairly priced to squeeze out competition. Lima Chamber of Commerce (CCL) director Carlos Posada has claimed that 4,900 Peruvian textile exporters closed down between 2012 and 2015 resulting in Peru’s textile exports falling 30 per cent. Now, the CCL wants that Peru’s trade commission Indecopi to investigate alleged dumping of Chinese textiles.

A CCL study of shirts from China sold in Peru and the United States found out that the same garments were priced on average four times more in the US, and as much as 88.3 per cent more. While that does not meet the legal definition of dumping as defined by the World Trade Organization, Posada believes it warrants an investigation.

The WTO defines dumping when goods are sold in an export market at a higher price than in their home market. If the clothes being imported into Peru are bought at prices lower than in China, then Peru would be entitled under its free trade agreement with China to slap import tariffs on those products.

In 2013, Gamarra faced a similar crisis. It was then that Indecopi responded by invoking anti-dumping statutes to tax imports on five specific product codes.

 
LATEST TOP NEWS
 


 
MOST POPULAR NEWS
VF Logo