Anti-Dumping Duty on Chinese Steel

Context: India has enacted a five-year anti-dumping duty targeting specific types of Chinese steel.

Reason:India enacted an anti-dumping duty on china due to a 62% rise in steel imports from China to India between April and July, compared to the same timeframe last year.

What is Anti-dumping duty?

• An anti dumping duty is a measure designed to prevent a country’s trading partners from “dumping” goods into its domestic markets at a price lower than its normal value. 
• It is permitted by the World Trade Organisation.Anti dumping duties are levied against exporter / country in as much as they are country specific and exporter specific as against the customs duties which are general and universally applicable to all imports irrespective of the country of origin.
• Directorate General of Trade Remedies  under the Ministry of Commerce and Industry is nodal authority for administering  anti-dumping, countervailing duties and safeguard measures to check unfair trade practices.

WTO’s Provisions Related to Anti-Dumping Duty:

• Under Article VI of GATT 1994, and the Anti-Dumping Agreement, WTO Members can impose anti-dumping measures.
• Time-Period: Anti-dumping measures must expire five years after the date of imposition, unless an investigation shows that ending the measure would lead to injury.
• Committee on Anti-Dumping Practices: The Committee, which meets at least twice a year, provides Members of the WTO the opportunity to discuss any matters relating to the Anti-Dumping Agreement.

Importance of  Anti Dumping measures:

• Checks  unfair trade practice: Anti dumping measures serve the purpose of providing a remedy to the domestic industry against the injury caused by the unfair trade practice of dumping. 
• Corrects Trade Distortion: In fact, anti dumping is a trade remedial measure to counteract the trade distortion caused by dumping and the consequential injury to the domestic industry.

News Source: Livemint

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