Against the recessionary tide towards protectionism, India’s Directorate General of Safeguards (“DGSG”) terminated its safeguard investigation on plain particle board on November 24, 2009. Acting in coordination with our associate Indian counsel on behalf of Vanachai Group, the Apisith & Alliance international trade legal team was engaged in lobbying the relevant authorities and interested parties to effect a termination of the investigation.

Lobbying activities were aimed at the DGSG to demonstrate a lack of legal foundation and factual merit in the petitioner’s application for safeguard measures. To this end, the supports of the Thai government’s Department of Foreign Trade and the Panel Products Industry Club of the Thai Federation of Industries, were sought and received in the form of written submissions addressed to the DGSG. On the Indian front, end-users and importers were galvanized to oppose the proposed safeguard duty of 30% on imports of plain particle board.

Through these lobbying channels, our legal submissions convinced the DGSG of several weaknesses in the petitioner’s application. Firstly, the applicants could not be legally regarded as representative of India’s domestic industry. Secondly, there was no surge in imports which would warrant the implementation of a safeguard duty. Thirdly, clear distinctions were drawn between products manufactured by the domestic industry and imported particle board products such that they could not be deemed to be alike or directly competitive. Finally, due to the applicant’s shortcomings there was insufficient data with which to make a determination of serious injury, or threat of serious injury, to the domestic industry.