To protect domestic industries from cheap imports, India has imposed anti-dumping duties on five Chinese goods. 

• The government took this step after investigations revealed that these products were being exported from China at prices lower than their normal value. 
• The products under the anti dumping duties include:
  • Soft Ferrite Cores, 
  • vacuum insulated flasks, 
  • aluminium foil,
  • Trichloro Isocyanuric Acid, and 
  • Poly Vinyl Chloride (PVC) Paste Resin.
• Duration of the Duties: The anti-dumping duty on Soft Ferrite Cores, vacuum insulated flasks, and Trichloro Isocyanuric Acid will be applicable for five years.
  • The duty on aluminium foil is provisional for six months.

What is Anti-Dumping Duty?

• Anti-dumping duty is a protectionist tariff imposed by a country on foreign imports that are priced below fair market value. 
• This duty helps protect domestic industries from unfair competition caused by cheap imports that can harm local manufacturers.

Why is Anti-Dumping Duty Imposed?

• Countries impose anti-dumping duties when they find that:
• Foreign companies are selling goods at a price lower than their domestic market price.
• Such imports harm domestic manufacturers by undercutting their prices.
• The dumping practice leads to market distortion and unfair competition.

Role of the Directorate General of Trade Remedies (DGTR)

• The duties are imposed based on recommendations by the Commerce Ministry’s investigation arm, DGTR. 
• The agency conducts investigations to assess the impact of these cheap imports on domestic industries.

India’s Strategy Against Unfair Trade Practices

• Anti-dumping duties are allowed under World Trade Organization (WTO) rules to ensure fair trade.
• India has imposed similar duties on various products in the past to counter cheap imports.
• The country is particularly concerned about its growing trade deficit with China, which stood at $85 billion in 2023-24.
• These measures aim to protect Indian manufacturers and create a level playing field against foreign exporters engaging in unfair trade practices.

Impact of Anti-Dumping Duty

• Protects local industries from unfair competition.
• Encourages fair trade and prevents market monopoly by foreign firms.
• Reduces trade deficit with countries practicing dumping.
• Can increase prices for consumers and businesses relying on imports.

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.

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