India has recently initiated a series of anti-dumping investigations targeting imports from China, South Korea, Vietnam, and Thailand, signaling a move to protect its domestic industries from potentially unfair trade practices. These probes cover a range of products, including solar encapsulants, mobile covers, and certain chemicals.
The Directorate General of Trade Remedies (DGTR), the investigative arm of the Commerce Ministry, is spearheading these investigations after receiving applications from domestic companies alleging that dumped imports are causing material injury. These companies claim that the imported goods are being sold at prices below their normal value, thereby harming local manufacturers.
Solar Encapsulants
RenewSys India has filed an application that has led to anti-dumping investigations into solar encapsulants from China, South Korea, Vietnam and Thailand. Solar encapsulants are materials used to protect solar cells from environmental factors like moisture and UV radiation, ensuring the long-term performance and reliability of solar panels.
Mobile Covers
The DGTR has also initiated a probe into mobile covers imported from China. The availability of cheap mobile covers in the Indian market has raised concerns among domestic manufacturers, who allege that they are unable to compete with the artificially low prices.
Chemical Imports
In addition to solar encapsulants and mobile covers, India has also launched anti-dumping investigations into certain chemical imports. These include 4-ADPA from China and the EU. Previously, India has imposed anti-dumping duties on chemicals like 'Insoluble Sulphur' from China and Japan, PEDA, Acetonitrile, and Vitamin-A Palmitate from China. These chemicals are used in various industries, including the rubber, pharmaceutical, and herbicide sectors.
The Anti-Dumping Process
Anti-dumping investigations are conducted to determine whether domestic industries have been hurt by a surge in cheap imports. The DGTR examines evidence of dumping, the extent of the dumping, and the injury caused to the domestic industry. If the DGTR concludes that dumping has occurred and that it has caused material injury, it recommends the imposition of anti-dumping duties. The final decision to impose these duties rests with the Finance Ministry.
Purpose of Anti-Dumping Duties
Anti-dumping duties are imposed to create a level playing field for domestic producers. By increasing the cost of imported goods that are being dumped, these duties aim to protect domestic industries from unfair competition and ensure fair trading practices.
India and the WTO
Anti-dumping measures are permitted under the World Trade Organization (WTO) regime. The WTO allows member countries to impose anti-dumping duties if it is established that imports are being dumped and that they are causing material injury to the domestic industry. India and China are both members of the WTO.
India's Stance on Chinese Imports
India has been actively using anti-dumping duties to address the issue of cheap imports from China across various sectors. These measures are intended to reduce the country's reliance on inexpensive imports and protect domestic manufacturers.
