India Imposes Five-Year Anti-Dumping Duty on Steel Imports from Vietnam to Protect Domestic Industry

India has introduced a duty of USD 121.55 per tonne on hot rolled flat steel imports from Vietnam. This measure, effective for five years, aims to shield local manufacturers from low-cost imports. The Directorate General of Trade Remedies (DGTR) recommended this action, as stated in a finance ministry notification.

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The DGTR's investigation into the alleged dumping of these steel products led to the duty's imposition. The steel industry had called for this probe due to concerns about the impact of cheap imports. However, the user industry opposes this decision.

Anti-Dumping Measures and WTO

Countries conduct anti-dumping investigations to assess if domestic industries suffer from an influx of inexpensive imports. As a response, they impose duties under the World Trade Organization's (WTO) multilateral framework. This approach ensures fair trade practices and balances competition between local and foreign producers.

Both India and Vietnam are WTO members, which comprises 166 countries. Additionally, India has a free trade agreement with ASEAN since January 2010, of which Vietnam is also a member.

Trade Dynamics Between India and Vietnam

Bilateral trade between India and Vietnam reached USD 14.81 billion in 2023-24, slightly up from USD 14.7 billion in 2022-23. India's exports were USD 5.47 billion, while imports stood at USD 9.34 billion, resulting in a trade deficit of USD 3.87 billion favouring Vietnam.

The anti-dumping duty highlights the ongoing concerns of Indian steel manufacturers regarding unfair competition from cheaper imports. This move is part of broader efforts to maintain equitable trading conditions for domestic producers against international counterparts.

With inputs from PTI