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Anti-Dumping Duty
Context:
The Directorate General of Trade Remedies (DGTR) has launched an anti-dumping probe into the import of hot rolled flat products of alloy or non-alloy steel from Vietnam.
About Anti-Dumping Duty
- Anti-dumping duty is a tariff applied to imports from foreign countries when these goods are priced below the fair market value of similar products in the domestic market.
- The government imposes this duty when it suspects that foreign goods are being “dumped” into the domestic market at artificially low prices.
- The primary goal of anti-dumping duty is to shield local businesses and markets from unfair competition by foreign imports and to restore fair trade by correcting the market distortion caused by dumping.
- The World Trade Organization (WTO) permits the use of anti-dumping measures as a tool for ensuring fair competition.
- It allows the government of the affected country to take legal action against the dumping nation, provided there is concrete evidence of significant harm to domestic industries.
- The government must demonstrate that dumping occurred, quantify the extent of the dumping, and prove the injury or threat of injury to the domestic market.
- WTO Membership: India and Vietnam are both members of the WTO, a 166-member multilateral trade organisation.
- ASEAN Free Trade Agreement: India has had a free trade agreement with the 10-nation ASEAN bloc since January 2010, and Vietnam is a member of ASEAN.
- Bilateral Trade Overview: Bilateral trade between the two countries was USD 14.81 billion in 2023-24, up slightly from USD 14.7 billion in 2022-23.
- Trade Deficit: India’s exports were USD 5.47 billion, while imports totaled USD 9.34 billion, resulting in a trade deficit of USD 3.87 billion in favour of Vietnam.