As of January 28, 2019, India has imposed an anti-dumping duty on 99 Chinese products to protect its domestic players from a glut of cheap imports in the local markets. These products include petrochemicals, chemicals, pharmaceuticals, machinery, yarn, fibres, steel and rubber. However, the Indian government has stated that it will not extend the anti-dumping duty on importing Chinese paracetamol, which is used in medicines.
According to a notification by the directorate general of trade remedies (DGTR),”the authority holds that domestic industry failed to provide any satisfactory evidence that the expiry of the said anti-dumping duty is likely to lead to continuation or recurrence of dumping and injury to the domestic industry.” The Indian finance ministry had imposed the anti-dumping duty on Chinese paracetamol for the first time in 2002. This was extended in 2007 and 2013 for a period of five years. Before the expiry of the duty in October 2018, the Indian industry has approached the directorate in May 2018, to appeal for the continuation of the duty.
China has also imposed anti-dumping duties on the import of ortho dichlorobenzene (ODCB) from India and Japan, due to significant damage to the domestic industry. ODCB is used for the production of multiple chemical products, used widely in the manufacturing of dyes, medicines and pesticides. Duties ranging from 31.9% to 70.4% will be levied for a period of five years.
The imposition of anti-dumping duties is a means of ensuring fair trade practices and creating level-playing fields for domestic producers as well as foreign players. On India’s part, this is one of the steps taken as part of ongoing and sustained efforts to bridge the country’s trade deficit by lowering trade barriers for Indian exports to China.
During China’s trade policy review at the WTO in 2018, India demanded that efforts be made to lower trade barriers for Indian products like meat, rice, pharmaceuticals and IT products, in order to reduce the unsustainable trade imbalances and the $63 billion trade deficit between both countries. India is also seeking market access for multiple agricultural products, oil seeds, milk and milk products as well as animal feeds.Indian exports have been facing obstacles in accessing Chinese markets due to opaque, stringent, complex and onerous regulatory market requirements in case of exports of agricultural and pharmaceutical products.
During China’s trade policy review at the WTO in 2018, India demanded that efforts be made to lower trade barriers for Indian products like meat, rice, pharmaceuticals and IT products, in order to reduce the unsustainable trade imbalances and the $63 billion trade deficit between both countries. India is also seeking market access for multiple agricultural products, oil seeds, milk and milk products as well as animal feeds.Indian exports have been facing obstacles in accessing Chinese markets due to opaque, stringent, complex and onerous regulatory market requirements in case of exports of agricultural and pharmaceutical products.
In case of the services sectors, Indian companies faced challenges related to the complex criteria for participation and qualification for contracts with Chinese state-owned enterprises (SOEs). There is immense scope for collaborations between the Indian IT sector and Chinese SOEs to provide state-of-the-art and custom-designed solutions, if issues related to licensing and taxation are adequately addressed.
Both countries have signed a protocol for India to export fish oil, fish meal and non-basmati rice to China. The General Administration of China Customs (GACC) has also approved the import of rapeseed meal from six Indian mills. In addition to this, a protocol for the export of Indian tobacco leaves to China has also been inked. China is the largest producer and consumer of tobacco in the world.
All these efforts highlight that India is actively engaged in the reduction of its ballooning trade deficit with China. Bilateral trade between India and China has been rising despite military and political stand-offs. In 2017, it rose to a historical high of $84.44 billion and Indian exports to China saw a 40% increase. Before this, bilateral trade had stagnated at $70 billion for several years, despite setting a target of $100 billion by 2015. In the coming years, trade and investments are expected to be boosted further between both countries.
India Outbound
February 5, 2019
source https://indiaoutbound.org/anti-dumping-duties-china-and-india/
No comments:
Post a Comment