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Arzinger Successful for Cable Factories in EAEU Anti-Dumping Investigation

Arzinger Successful for Cable Factories in EAEU Anti-Dumping Investigation

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Acting on behalf of the Incab manufacturer and seller of fiber-optic cables, Arzinger has successfully protected the interests of it and six other producers of optical cables from Russia, Kazakhstan, and Belarus in an antidumping investigation initiated in 2018 by Rosnano's Optic Fiber Systems JSC in the Eurasian Economic Commission against US and Japanese producers of optical fiber.

According to Arzinger, Rosnano OFS – the only producer of optical fiber in EAEU – claimed that its US and Japanese competitors were dumping their products to artificially lower prices and requested that the Department for Internal Market Defense of the Eurasian Economic Commission investigate the matter and impose antidumping measures. According to the firm, "the investigation was directly aimed at producers of optical fiber, but if succeeded, it would have directly affected the EAEU producers of the optical cable – including the industry leaders Beltelecable, Incab, KCEP and others – by skyrocketing prices for cable because fiber is a crucial component of optical cables."

The investigation concluded on July 29, 2019, and the Department for Internal Market Defense of the Eurasian Economic Commission found no grounds to impose antidumping measures.

The Arzinger team consisted of Managing Partner Sergey Mashonsky, Partner Klim Stashevsky, and Senior Associate Aleksei Mikhailov. “It’s a huge victory for all the producers of optical cable in Belarus, Russia and Kazakhstan," commented Mashonsky. "When we took the case it promised no great success along the way and the task was to manage the possible damage by persuading the Department to reduce the 40% antidumping duty that threatened all the producers who use imported fiber. The reason for our professional skepticism was based on statistics – in previous seven years of investigations the Department always ruled for antidumping measures. We are overwhelmed and extremely happy for our producers that this investigation ended successfully with no measures imposed."

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