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Taiwan protests move to limit CD-Rs by Argentina

Trade officials expressed concern at a WTO meeting in Geneva on Wednesday that Argentina unilaterally imposed "safeguard duties" on imports of Taiwan-made compact discs-recordable (CD-Rs) in May.

Argentina had notified the WTO that it was imposing "safeguard duties" of US$0.13 per unit in the first year (from May 30 to May 29 next year), US$0.11 in the second year (to May 29, 2009) and US$0.08 in the final year (to May 29, 2010) on CD-Rs imported from Taiwan.

Taiwanese delegates told the WTO Committee on Safeguards meeting on Wednesday that Taiwan is very concerned about the measure and that it reserves its rights under WTO rules to take "whatever steps [necessary] to protect the interests of its industry."

They expressed concern that Taiwanese manufacturers and exporters had not been given adequate opportunity for prior consultations and to state their case; that Argentina's accusation that Taiwan charges a higher price for the product was unsubstantiated and that Argentina had failed to establish a causal link between imports and injury to domestic industry but has attributed the cause of the so-called "injury" to imported CD-Rs only.

They said the measure has harmed the rights and interests of Argentina's consumers.

Argentine tallies show that Taiwanese CD-Rs held a 61.29 percent share of the market in Argentina from January to July this year, nearly double that of the No. 2 exporter, India.

Argentine officials said that their government had given WTO members the opportunity for consultations and that two rounds of talks were conducted with Taiwanese representatives, one in Buenos Aires and the other in Geneva.

According to WTO rules, a WTO member may restrict imports of a product temporarily if its domestic industry has been harmed or faces the threat of being harmed by a surge in imports.

Taiwanese manufacturers of high-technology products have considered establishing plants in the four Mercosur member states -- Argentina, Brazil, Paraguay and Uruguay -- in view of the huge market potential and with the aim of skirting trade barriers.
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