The United Arab Emirates’ government advisory council is proposing an anti-dumping law that it says would better protect industry in the country from foreign goods flooding the market.
The draft law, passed by the Federal National Council on Tuesday but requiring approval by the cabinet and president, would set standards of fair competition and protect local firms from “harmful practices…such as flooding” the local market with cheap goods, state news agency WAM reported on Tuesday.
The UAE, the Arab world’s second largest economy, is considering the measure as a sustained period of low oil prices pushes the government to bolster efforts to develop non-oil industries.
The proposed law would allow the UAE to impose duties on goods it believes are being dumped, Minister of Economy Sultan bin Saeed al-Mansouri was quoted as saying by local newspaper Gulf News.
Abdulla al-Saleh, undersecretary for foreign trade and industry at the ministry, said in November that the six countries in the Gulf Cooperation Council, which includes the UAE, were continuing to study whether to raise import duties on steel.
Local steel producers have complained that Chinese and other foreign manufacturers are flooding Gulf Arab countries with products priced below local market levels.
Saleh said in November that the UAE was open to raising its steel duty to 15 per cent from 5 per cent, bringing it in line with some neighbouring countries.