Question
Download Solution PDFWhat is the primary purpose of imposing an anti-dumping duty on ‘Trichloro isocyanuric acid’ from China and Japan?
Answer (Detailed Solution Below)
Option 4 : To protect the domestic industry from unfair trade practices
Detailed Solution
Download Solution PDFThe 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.