India Tightens Trade Defenses: Five-Year Anti-Dumping Duties Imposed on Chinese Aluminium Foil and Chemicals

Image Source : The Hindu

In a decisive move to protect domestic manufacturers from unfair trade practices, the Indian government has imposed five-year anti-dumping duties on select imports from China, Taiwan, and Russia. The action follows detailed investigations by the Directorate General of Trade Remedies (DGTR), which found that these countries were exporting goods at prices significantly below fair market value, causing material injury to Indian industries.

Key Highlights of the Trade Action

- The anti-dumping duty on aluminium foil (5.5 to 80 microns thick) imported from China has been extended from a provisional six-month period to a definitive five-year term
- Duties have also been imposed on Pretilachlor, a herbicide widely used in rice and paddy farming, imported from China
- Acetonitrile, a solvent critical to pharmaceutical and agrochemical production, will now attract duties if sourced from China, Taiwan, or Russia
- The duties are based on DGTR’s findings that these products were being dumped at unfairly low prices, harming Indian producers

Product-Specific Details

- Aluminium Foil: Duties range from USD 479 to USD 721 per metric tonne depending on the Chinese exporter, with exemptions for ultra-light gauge foil and certain specialty applications
- Pretilachlor: A five-year duty has been imposed to curb underpriced imports that undercut domestic agrochemical firms
- Acetonitrile: Used in high-purity applications, this chemical will now face duties from three countries to prevent market distortion

Strategic and Economic Context

- The move is part of India’s broader effort to reduce its trade deficit with China and support domestic manufacturing under the Make in India initiative
- India was the second-largest user of anti-dumping measures globally in 2023, after the United States
- The duties are compliant with WTO rules and are aimed at restoring fair competition rather than restricting trade

Industry Response and Market Impact

- Domestic manufacturers have welcomed the decision, citing improved competitiveness and potential for capacity expansion
- Retailers and importers, however, anticipate a short-term rise in prices for affected goods, particularly in packaging and agrochemical sectors
- The duties are expected to stabilize prices and encourage investment in local production capabilities

Future Outlook

With global trade dynamics shifting and protectionist measures gaining traction, India’s latest anti-dumping actions signal a more assertive stance in defending its industrial base. As the country continues to monitor import trends, further trade remedies may be deployed to ensure a level playing field for domestic producers.

Sources: Economic Times, BusinessWorld, JurisHour, The Straits Times, InsightsIAS.