Before the allegations and consequent inquiry, Indonesia had controlled some 40% of Egypt’s tyre market but was accused of flooding the country with low cost products.
Egypt complained to Indonesia for the first time in August 2006 but, according to World Trade Organization agreements, the allegation and tax was recently lifted.
Egyptian Ambassador to Indonesia Mohamed Taha said investigations conducted by the Egyptian Ministry of Trade and Industry had found "a slight margin of dumping by the Indonesian exporters" but that the import tax had been lifted regardless.
"Some other factors interfered to lead to these results, and therefore, the Indonesian side cannot bear its full economic consequences," Taha said
During the investigation period, Indonesian tyre exports to Egypt hit US$70 million – $80 million annually.
With dumping duties cut, the Indonesian Tire Producers Association said this year Indonesian tyre exports to Egypt could easily reach the US$1 billion mark.
The association’s figures showed tyre exports, mainly to Southeast Asian, Middle Eastern and Azerbaijan markets, reached US$820 million last year. (Tyres & Accessories/Staffordshire, U.K.)