DMPQ-What is Anti-Dumping duty. Discuss the implications of recently India Imposing antidumping duties on Chinese goods.

India has imposed anti-dumping duty on five Chinese products, including certain aluminium goods and some chemicals, for five years to guard local manufacturers from cheap imports from the neighbouring country.

A remedy sanctioned by the WTO to protect a member country’s domestic industry from imports that have been priced at levels below those prevailing in the exporting nation’s home market,  The anti-dumping duty has become one of India’s most widely used trade weapons, especially against a flood of cheaper Chinese imports.

Anti-dumping measures are taken to ensure fair trade and provide a level playing field to the domestic industry. Both India and China are members of the Geneva-based World Trade Organisation (WTO).  India has initiated maximum anti-dumping cases against dumped imports from China.  India’s exports to China during the April-September 2021 period were worth $12.26 billion while imports aggregated at $42.33 billion, leaving a trade deficit of $30.07 billion.

The effectiveness of the measure in providing timely relief to smaller domestic manufacturers facing an existential crisis on account of suspected dumping has also been undermined in the past by a less than ‘swift’ process with the DGTR hamstrung by a personnel crunch.  With companies worldwide now seeking to de-risk their businesses from an excessive reliance on China in the wake of the COVID-19 pandemic, the prospect of more capacity in that country turning surplus and being used to produce goods for dumping overseas increases.

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