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Archive -Seychelles

National mechanism for trade remedies |14 August 2018

 

 

Proposed law to better protect local producers

 

Domestic producers and industries in Seychelles will be better protected against imported products with proposed legislation that will establish a national mechanism for trade remedies.

The legislation proposes a framework of three trade remedies, also known as trade defence measures to offset injuries to local industries caused by either a surge of imports or imported ‘like products’ that are sold cheaper than in their domestic market or imported ‘like products’ that have been subsidised by the government of the exporting country.

‘Like products’ are products that are identical or alike in characteristics.

The three proposed trade remedy measures are anti-dumping measures, countervailing measures and safeguard measures.

The initiative to develop a national legal framework was undertaken by the trade department of the Ministry of Finance, Trade, Investment and Economic Planning earlier this year following consultations with relevant stakeholders.

The legislation has been drafted and is currently in circulation among the various stakeholders for reviewing.

Yesterday, the Ministry of Finance, Trade, Investment and Economic Planning organised a national validation workshop at Eden Bleu hotel to provide stakeholders with an opportunity to acquire the necessary knowledge on trade remedies and to allow them to provide feedback on the drafted legislation.

The workshop was attended by over 30 delegates from both the public and private sector. Among the attendees were principal secretary for investment Michel Nalletamby and representatives from the Seychelles Chamber of Commerce and Industry (SCCI), Seychelles Revenue Commission (SRC) and Seychelles Farmers Association (SeyFA). The leader of government business in the National Assembly Charles Decommarmond was also present along with two other members of the assembly.

Charles Morin, chief negotiator for trade agreements under the Ministry of Finance, Trade, Investment and Economic Planning, explained that the framework is necessary to protect domestic industries from imports and to provide them with certain safeguards that the government is needed if the domestic industry is negatively affected by such.

“Many industries are relatively small and require a certain level of policy protection in order to grow and compete with imports. As our market grows, local production must grow with it. Domestic industries are imperative for food security, innovation and reducing the continuous dependence on imports in our remote island state,” he said.

He added that the Trade Remedies Bill and its supplementary instruments have been drafted jointly by the trade department and independent consultant, Dr Gustav Brink who has worked in neighbouring countries including Mauritius and other small island states.

“The bill has been drafted in the context of Seychelles while ensuring that it is in conformity with international rules. After the extensive consultations held, we have been able to incorporate the concerns of numerous stakeholders into this draft law in order to bring transparency and most importantly, give due consideration to the needs of all relevant stakeholders,” he stated.  

Consultant Dr Gustav Brink outlined the different remedy measures and the procedure for imposing the remedies.

He explained that the domestic industry will have to file a complaint to a committee to be set up by the Ministry of Finance, Trade, Investment and Economic Planning. The committee will act as an investigating authority and will then put in place the necessary remedial measures.

The Bill will be presented to the National Assembly in due course and future workshops and training courses will be organised to develop the capacity of relevant stakeholders to ensure effective implementation of the laws.

 

 

 

 

 

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