Attracting local exporters and government trade representatives, presenters at Ithraa’s recent Trade Up seminar said that Omani exporters must understand anti-dumping to defend themselves and survive in international markets.
The Ithraa-organized event focused on defining causes, contributory factors and the dangers of dumping, in addition to exploring strategies that can safeguard trade transactions and ensure compliance, while maintaining a competitive performance.
Dr. Sayid Al Riyami, Professor of Economics and Political Science at Sultan Qaboos University (SQU), opened the Trade Up seminar with a presentation on anti-dumping.
The day also included a paper presented by the Ministry of Commerce and Industry on the experience of Omani companies in overcoming the challenges of dumping while OCTAL, the Sultanate’s largest non-oil exporter, offered its extensive knowledge and knowhow in the area.
“Dumping or exporting a product to other countries at less than its normal value is an unethical and problematic practice. It is an issue our business community need to be aware of if we are to protect and maintain international trade interests,” said Nasima Yahya Al Balushi, Ithraa’s Director General of Export Development.
“The impact of dumped imports can significantly damage domestic industries, directly resulting in loss of sales and reduced profits, market share, productivity, and return on investments. This in turn impacts on employment, wages, growth and the ability to raise capital for investment. It is a serious matter,” pointed out Al Balushi.
Ithraa’s Director General of Export Development elaborated on how companies use dumping as a way to maximize profits by creating a monopoly in markets, based on local demand for particular goods.
“Dumping benefits the consumer. However, prosperity of the local market is always negatively affected by the long-term withdrawal of the dumped export,” she commented.
Creating monopolies and driving domestic companies out of business through lower priced products is not an uncommon event. Anti-dumping measures are designed to protect domestic industries from being damaged, and are therefore an imperative for importers and exporters to be aware of; not only in terms of ethical trading and working compliantly to market regulations, but also in terms of securing the domestic marketplace and local industry.
“The most common result of dumping is the destabilization of domestic markets and industry and this potentially results in long-term damage to the country. Markets can end up with zero competition and that is not in the public interest.”
Ithraa’s Trade Up seminars look at the challenges and opportunities in trading internationally, from discussing new high growth markets to cultural understanding, legal issues and marketing. “The Trade Up seminar series has been designed specifically to support Omani exporters in a peer group environment in which businesses meet regularly to access advice and information and hear from international trade experts and network. We want to help local exporters get it right,” remarked Al Balushi.