Current Affairs
Daily Bits

India initiates anti-dumping probe

  • Posted By
    10Pointer
  • Categories
    Economy
  • Published
    11th May, 2022

Context

India has initiated an anti-dumping probe against imports of a certain type of optical fibre from China, Indonesia and South Korea following a complaint by a domestic player. 

  • The duty is aimed at protecting domestic industry from cheap imports.

What is ‘anti-dumping’ duty?

  • Countries start anti-dumping probes to determine whether their domestic industries have been hurt because of a surge in cheap imports. 
  • As a countermeasure, they impose these duties under the multilateral regime of the Geneva-based World Trade Organisation (WTO).
    • India is a member of the Geneva-based World Trade Organisation (WTO).
  • The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters. 
  • India has already imposed anti-dumping duty on several products to tackle cheap imports from various countries, including China.

Dumping

Dumping is said to occur when the goods are exported by a country to another country at a price lower than its normal value. This is an unfair trade practice which can have a distortive effect on international trade.

The product

  • The commerce ministry's investigation arm Directorate General of Trade Remedies (DGTR) is probing the alleged dumping of 'Dispersion Unshifted Single-mode Optical Fibre' originating in or exported from these three nations. 
  • The product is used for the manufacture of different kinds of cables, including optical fibre, tight buffer cables, armoured and un-armoured cables. 
  • Single-mode optical fibre is mainly applied to high-data-rate, long distance and access network transportation.

Verifying, please be patient.

X