India has initiated an anti-dumping investigation against the import of a chemical used in tyre and rubber products from China and Japan. This action comes after a complaint by Atul Limited to the Directorate General of Trade Remedies (DGTR) alleging that the influx of cheap imports of ‘Resorcinol’ is causing significant harm to India’s domestic industry. The investigation targets shipments of Resorcinol, an intermediate compound crucial for bonding rubber to tyre cords and in specialized resins.
The World Trade Organisation allows countries to conduct anti-dumping investigations to safeguard their local industries from an influx of low-priced imports. The DGTR will scrutinize the alleged dumping of Resorcinol by exporters from China and Japan to assess its existence, scale, and impact. If it confirms that these goods are being sold below fair market value and are harming Indian producers, the DGTR will recommend anti-dumping duties to create a level playing field for the domestic industry.
The Ministry of Finance holds the final authority to impose these duties if the DGTR determines the extent of dumping. This measure aims to curb the flow of inexpensive foreign goods into the Indian market. Previous investigations by the DGTR have focused on finished automotive tyre imports and raw tyre components, indicating a broader effort to protect India’s industries from unfair trade practices.
