Indian Express: New Delhi: Thursday, March 30, 2023.
‘Dumping’ is the concept of exporting goods into the international market at lower prices and it is is governed by the General Agreement on Tariffs and Trade.
The Delhi High Court has observed that anti-dumping proceedings are business sensitive and ruled that confidential information relating to a particular industry, involving the assessment of trade relations between India and other countries cannot be disclosed through the Right to Information Act.
A single judge bench of Justice Prathiba Singh in its March 23 order was examining two pleas – one moved by the Central Government and the other by Indian Synthetics Rubber Private Ltd and Reliance Industries Pvt Ltd – against the order of the Central Information Commission CIC, which directed the Directorate General of Anti-Dumping and Allied Duties to provide the information sought by an RTI applicant Arvind M Kapoor.
During the 1990s, global trade saw extensive expansion leading to apprehensions by nations in respect of exports of goods and products from countries at prices lower than their domestic prices into importing countries. The concept of exporting goods into the international market at lower prices is known as ‘Dumping’ which is governed by The General Agreement on Tariffs and Trade (GATT).
“…this court is of the opinion that the imposition of anti-dumping duty and confidential information disclosed in such proceedings would have a significant impact on the economic interest and trade relations of India, as also would constitute information received by the authority in confidence, which cannot be subjected to disclosure,” Justice Singh held.
The High Court observed that the Anti-Dumping Agreement entered into amongst countries, post-GATT, recognises the sensitivity and the competitive advantage that can be gained by third parties if confidential data is disclosed.
The court held that for ‘good cause’ the said information can be refused to be disclosed. “A perusal of the note sheet sought would also show that the disclosure of the same under the RTI Act, especially in a case where the RTI applicant was a party to the anti-dumping investigations and is a competitor of the petitioners could cause serious prejudice and adversely affect various sections of the domestic industry,” the court pointed out.
The bench did not agree to the argument that denial of providing information under the RTI Act would lead to breach of principles of natural justice.
“When the Anti-Dumping Rules themselves provide an exception to disclosure in view of the nature of the proceedings, the court cannot allow the RTI applicant to bypass the said barrier,” the HC said.
The high court observed that for the disclosure of antidumping proceedings, the designated authority has to undertake a detailed inquiry into issues such as ‘competitive advantage’, ‘business sensitivity’, ‘productivity particulars’, ‘cost of raw materials’, ‘investments made’, ‘sales’, ‘market share’ etc. It has the requisite expertise to do so, the court said.
In contrast, the authorities under the RTI Act, the Central Public Information Officer, First Appellate Authority, and the CIC would not have the requisite expertise to comment upon or assess the impact of disclosure of confidential information submitted or obtained in anti-dumping proceedings, the HC said.
The court ruled that the entire purpose of having a complete and self-sufficient scheme for disclosure of confidential information under the Anti-Dumping Rules would be defeated if persons who are participating in anti-dumping investigation are permitted to tangentially seek information under the RTI Act.
“Anti-dumping proceedings by their very nature are proceedings which have national and international dimensions and also have an impact on the country’s economy. The proceedings involve dealing with business sensitive and confidential information relating to a particular industry. It also involves assessment of trade relations between India and various other countries as can be seen from the public notice and the final order in the present case,” the HC said.
The RTI applicant had sought information with respect to seven issues in relation to the initiation of an anti-dumping investigation concerning imports of Styrene Butadiene Rubber from the European Union, Korea, and Thailand. The applicant sought information in a note sheet which the Central Public Information Officer Ministry of Commerce and Industry said was confidential and it was upheld by the First Appellate Authority. The RTI applicant moved the CIC against this order.
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