Anti subsidy duty on steel pipe imports from china, vietnam extended for 5 years
- Steel and steel product imports from China and Vietnam are facing increased scrutiny, with the domestic industry claiming that Chinese goods are being imported into India at predatory prices.
Highlights:
- The Ministry of Finance has extended the anti-subsidy duty on imports of welded steel pipes and tubes from China and Vietnam for another five years.
- The duty, originally imposed in September 2019, aims to protect the domestic industry from injury caused by imports at subsidized prices.
- The extension follows a recommendation by the Directorate General of Trade Remedies (DGTR), a body under the Ministry of Commerce responsible for trade remedial measures.
DGTR’s Findings:
- The DGTR highlighted that the large production capacity of Chinese manufacturers might be used to export goods to India, further impacting the domestic industry.
- The DGTR's investigation led to the decision to continue the countervailing duty, which helps level the playing field for Indian manufacturers by mitigating the unfair advantages enjoyed by Chinese and Vietnamese producers due to subsidies.
Concerns Over Imports from China and Vietnam:
- The domestic steel industry has raised concerns about predatory pricing by Chinese manufacturers.
- Additionally, there are allegations that Chinese goods are being rerouted through Vietnam to exploit duty exemptions under the India-ASEAN Free Trade Agreement (FTA).
- The DGTR has also initiated an anti-dumping investigation on imports of hot-rolled flat products from Vietnam, as imports from the country have surged, reaching $5.8 billion between January and July 2024, a 17% increase from the same period last year.
Shift in India's Steel Trade Position:
- A report by Crisil revealed that India has become a net importer of steel in FY24, with a steel trade deficit of 1.1 million tonnes, marking a shift from its previous position as a net exporter since 2017. China, South Korea, and Japan continue to be the top steel exporters to India, but Vietnam has now joined the list of key steel suppliers.
Rising Imports from China:
- India’s imports from China have been on a continuous rise, exceeding $60 billion in the first seven months of 2024, marking a 10% increase compared to the same period in the previous year. For the fiscal year 2024, imports from China crossed the $100 billion mark.
Prelims Takeaways:
- India-ASEAN Free Trade Agreement
- Directorate General of Trade Remedies