ANTI-DUMPING DUTIES ON FIVE CHINESE PRODUCTS,

• As per Directorate General of Trade Remedies’ (DGTR) recommendations, India has imposed Anti-Dumping Duties on five Chinese products, including certain aluminium goods and some chemicals, for five years.
• The DGTR has concluded that these products have been exported at a price below normal value in Indian markets, which has resulted in dumping, causing injury to domestic markets.
• India’s exports to China during the April-September 2021 period were worth USD 12.26 billion while imports aggregated at USD 42.33 billion, leaving a Trade Deficit of USD 30.07 billion.

Important point:

• Dumping is said to occur when the goods are exported by a country to another country at a price lower than the price it normally charges in its own home market.
• This is an unfair trade practice which can have a distortive effect on international trade.
• Imposition of Anti-dumping duty is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect.
• In the long-term, anti-dumping duties can reduce the international competition of domestic companies producing similar goods.
• It is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value.
• The use of anti-dumping measures as an instrument of fair competition is permitted by the World Trade Organisation.

SOURCE: THE HINDU,THE ECONOMIC TIMES,MINT