|GENEVA Oct 20 (Reuters) - The World Trade Organization has issued a preliminary ruling against the Dominican Republic's tariffs on imports of polypropylene bags and tubular fabric, according to a text obtained by Reuters on Thursday.
The case was brought by Costa Rica, El Salvador, Honduras and Guatemala after the Dominican Republic introduced a 38 percent tax on the imports as a temporary measure to protect its own producers.
Use of such temporary protection, so-called "safeguard measures", is permitted under WTO rules if a specific industry is at serious risk because of an increase in imports.
But the preliminary report, which was issued by the WTO's dispute settlement body on Wednesday and is likely to be finalised near the end of November, agreed with the complaint and found the Dominican Republic's action was not justified.
Domincian Watchdog Note: It's not easy to compete in an open market when a few rich families has been used to devide the local market between them, form cartels to control prices, and prevent import of everything from apples to cement.
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