Posted on 11 Sep 2024
The Ministry of Finance has extended the anti-subsidy duty on imports of “welded steel pipes and tubes” from China and Vietnam for five years, citing injury to the domestic industry, according to a notification issued late on Tuesday. The duty was initially imposed in September 2019.
This follows a recommendation from the Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce, to continue the countervailing duty. The DGTR — a quasi-judicial body that independently undertakes investigations before making its recommendations to the Centre on administering trade remedial measures including anti-dumping, countervailing duties and safeguard measures — had said that the additional production capacity of Chinese manufacturers is likely to be utilised for exporting these goods to India.
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. The industry also said that goods are being routed through Vietnam to “exploit duty benefits” under the India-ASEAN Free Trade Agreement (FTA).\
The DGTR has also initiated an anti-dumping investigation into imports of hot-rolled flat products of alloy or non-alloy steel originating from or exported by Vietnam. India’s imports from Vietnam have been rising, increasing by 17 per cent to $5.8 billion between January and July this year, compared to the same period last year.
A report by Crisil highlighted that India became a net importer of steel in FY24, with an overall steel trade deficit of 1.1 million tonnes, signalling a shift from its previous position as a net exporter since fiscal 2017. While China, South Korea, and Japan remain the top exporters, Vietnam has now emerged as a new entrant on the list.
The Economic Survey had earlier noted that the recent increase in global trade through Mexico and Vietnam is the result of Chinese firms re-routing their supply chains through these countries. The survey also pointed out that China dominates the supply of several critical minerals used in manufacturing, making it difficult to decouple from China.
Meanwhile, India’s imports from China continue to rise. Imports from China have already surpassed $60 billion in the first seven months of 2024, a 10 per cent increase compared to the $55 billion recorded during the same period last year. In FY24, imports from China exceeded $100 billion.
Source:The Indian Express
