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Anti-Dumping Investigation

Facts for Prelims (FFP)


Source: ET

 Context: India has launched an anti-dumping investigation (initiated by the Directorate General of Trade Remedies (DGTR)), into the import of a chemical used in the rubber industry from China and Japan.


What is dumping?

When the goods are exported by a country to a foreign country at a price lower than the price it charges in its own home market is called dumping.


What is Anti-Dumping?

Anti-dumping duties are taxes imposed on imported goods in order to compensate for the difference between their export price and their normal value, if dumping causes injury to producers of competing products in the importing country. This practice can harm domestic industries by undercutting their prices and creating unfair competition. Anti-dumping measures are part of WTO regulations aimed at creating a level playing field for domestic producers against foreign competitors


Why anti-dumping investigation?

An anti-dumping probe is underway for imports of ‘insoluble sulphur’ from China and Japan. Insoluble sulphur, an amorphous form of sulphur, doesn’t dissolve in carbon disulphide and is crucial in the rubber industry. It serves as a vital additive agent in rubber products like tyres and shoes, enhancing their quality and wearability. Additionally, it acts as a vulcanization accelerator in the rubber manufacturing process, facilitating the hardening of rubber through cross-linking of molecules with other substances.


What is anti-dumping? 

Anti-dumping is a protective tariff imposed by a government on foreign imports sold at a price lower than the home market price. It aims to counter distortions in trade caused by dumping. Anti-dumping is permitted by the WTO