Indecopi officially initiates an investigation to apply safeguards to clothing

The National Institute for the Defense of Competition and the Protection of Intellectual Property (Indecopi) ordered the initiation of an investigation procedure on imports of clothing in the matter of safeguards.

The investigation procedure will have a maximum period of six months. In addition, Indecopi will invite the parties that have an interest in expressing their position on the purpose of the same, to make their points of view known, provide information and provide evidence to the Commission on Dumping, Subsidies and Elimination of Non-Tariff Trade Barriers, within 30 business days.

For the purposes of the investigation procedure that is arranged to initiate by means of the present administrative act, the period between January 2016 and June 2021 will be considered for the determination of the existence of a significant increase in imports of clothing that causes a possible serious injury to the domestic industry.

In this way, the Commission may assess, during the investigation, whether it is appropriate to recommend to the Multisectoral Commission the imposition of provisional safeguard measures on imports of clothing.

Background

This ex officio investigation occurs after “reasonable indications have been found that allow to infer, initially, a causal relationship between the significant increase registered in imports of confecciones and possible serious injury to the domestic industry (RPN) ”.

According to the considerations of the Indecopi resolution, the significant increase registered by imports of clothing during January 2016 and June 2021 would have had an impact on the impairment of the economic situation of the RPN, to the extent that the performance of the indicators of the RPN of clothing corresponding to the period of analysis, shows a situation of economic deterioration of said branch.

Indecopi also reveals that it was evaluated what other factors could influence the economic situation of the RPN of confecciones, such as the export activity of this branch, the evolution of domestic demand, the exchange rate and tariffs. However, no evidence was found to allow inferring, at this initial stage of the proceeding, that these factors cause or explain the possible serious injury to the domestic industry.