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NEWS & CURRENT AFFAIRS

The Nairobian

Chinese goods not banned, says Kebs

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By The Standard Business | Apr 21, 2009

By John Njiraini

China is free to sell cheap products in the country as long as they meet local standards, the Kenya Bureau of Standards said yesterday.

(Kebs) Managing Director Kioko Mang’eli said local manufacturers should therefore invest in modern technology to improve their competitiveness instead of blaming China of flooding the local market with cheap imports.

"China has a right to bring in products only if they are of high standards," he said.

Local manufacturers have repeatedly called on the Government to impose a ban on Chinese products, accusing the country for dumping cheap products in the local market.

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World Trade Organisation (WTO) regulations states that dumping of products in a foreign market occurs only when a company exports a product at a price lower than the price it normally charges on its own home market.

It is also dumping if a company sells a product at a price lower than the amount used to manufacture it.

Article VI of the General Agreement on Tariffs and Trade 1994 that explores issues on Anti-Dumping, gives countries the freedom to export to foreign markets as long as they are not engaged in unfair practices. The rules gives individual nations the powers to apply anti-dumping measures after investigation determination that an imported product is dumped and that the dumped imports are causing material injury to a domestic industry producing the same product.

Official complaint

However, the Government is yet to conduct investigations to verify allegations by local manufacturers that China is killing Kenyan industries.

Besides, there has not been any official complaint to the world trade governing body by the Government against China.

According to WTO rules, only the Government can lodge a complaint against another country in case of dumping.

He said Kebs undertakes thorough inspection and verification of Chinese products before they are allowed entry into the local market.

According to the Export Promotion Council, China’s exports to Kenya for 2006 were worth Sh44.7 billion