What is the primary purpose of imposing an anti-dumping duty on ‘Trichloro isocyanuric acid’ from China and Japan?

  1. To increase government revenue
  2. To promote exports of the chemical
  3. To encourage more imports of the chemical
  4. To protect the domestic industry from unfair trade practices

Answer (Detailed Solution Below)

Option 4 : To protect the domestic industry from unfair trade practices

Detailed Solution

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The correct answer is To protect the domestic industry from unfair trade practices.

In News

  • India has imposed an anti-dumping duty of up to $986 per tonne on ‘Trichloro isocyanuric acid’ imported from China and Japan.
  • The duty will remain in effect for five years to protect the domestic industry from low-cost imports.

Key Points

  • The anti-dumping duty is based on recommendations from the Directorate General of Trade Remedies (DGTR), which found that domestic manufacturers suffered material injury due to dumped imports.
  • ‘Trichloro isocyanuric acid’ is a chemical used for water treatment.
  • The duty aims to create a level playing field for Indian manufacturers and prevent unfair pricing.
  • The Ministry of Finance issued the notification to enforce the measure.

Additional Information

  • What is Anti-Dumping Duty?
    • A tariff imposed by a government on foreign imports believed to be priced below fair market value.
    • Its purpose is to safeguard domestic industries from unfair competition.
  • Role of Directorate General of Trade Remedies (DGTR):
    • It investigates unfair trade practices and recommends measures to the government.
    • It works under the Ministry of Commerce & Industry.
  • Impact of Anti-Dumping Duty:
    • Prevents price undercutting and helps domestic industries stay competitive.
    • Encourages fair trade practices between countries.

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