Syllabus
Prelims – Current events of national importance
Mains – GS III | Economic Development | Issues related to development | Changes in industrial policy and their effects on industrial growth.
Why in News?
India has recently imposed anti-dumping duties on 5 Chinese goods following recommendations made by the Directorate General of Trade Remedies (DGTR), the investigation arm of Ministry of Commerce.
- Anti-dumping duty-imposed Goods
- Soft Ferrite Cores (used in electric vehicles, chargers, and telecom devices) – 5 years.
- Certain thickness of vacuum insulated flask – 5 years.
- Aluminium foil (for 6 months)
- Trichloro Isocyanuric Acid (chemical used for water treatment) – 5 years.
- Poly Vinyl Chloride Paste Resin
- These products were found to be sold in India at prices below normal market value.
China is India's second largest trading partner.
- Anti-dumping duties –It is a tariff imposed on imported goods that are priced below their fair market value in the exporting country, aiming to protect domestic industries from unfair competition.
- Anti-dumping probes are conducted by countries to determine whether domestic industries have been hurt because of a surge in cheap imports.
- Probes are conducted periodically to check for the impact of cheap imports on domestic industries.
- A product is considered to be dumped when a producer exports his product at a price lower than its value in its domestic market.
- It is imposed as per multilateral regime of World Trade Organization (WTO), to ensure fair trading practices and a level-playing field for domestic producers’ vis-a-vis foreign producers and exporters.
- Article 6 in the General Agreement on Tariffs and Trade (GATT) allows countries to take action against dumping.
Reference
Hindustan Times | What are anti-dumping duties?
