Saudi group to sue South Korean firms for dumping

A group of Saudi private and government business entities plan to sue some South Korean firms for allegedly dumping products, notably in the energy and petrochemicals sector, on the Saudi market, according to Abdulrahman Al-Zamil, the head of the Saudi Export Development Center. Al-Zamil, who also heads the local industries follow-up committee, accused the South Korean companies of deliberately exporting products to the Kingdom at prices 20 percent below cost. He said the group would also file similar cases against certain government-owned companies that purchased these products. Al-Zamil said the group would send letters to the Ministry of Commerce and Industry and other departments concerned to look into the case. He asked the Saudi companies, which he described as “mega” firms, to provide evidence that could refute charges that they bought these Korean products at the expense of local products. In a meeting held recently at the premises of the Riyadh-based Council of Saudi Chambers, the Saudi exporters explored measures to deal with foreign companies dumping their goods on the domestic market. They said government departments should comply with a royal decree that compels them to procure goods and services locally. The meeting decided to form a team to investigate violations and noncompliance of the decree. The meeting agreed to form two joint commissions for exporters and producers. The first will support out-bound products through contact with the Saudi Development Fund (SDF). The second commission is assigned to tackle hurdles facing Saudi exports in coordination with the Ministry of Finance, the body responsible for signing deals with countries targeted by Saudi producers. Source: ArabNews