The European Union (EU) has imposed a provisional anti-dumping duty of up to 31.2% on imports of water and sewage pipes from India for six months to protect its own domestic industry.
The decision is in line with the European Commission’s anti-dumping probe in which it has concluded that at this stage the material injury to the Union industry was caused by the dumped imports from India. Accordingly, provisional measures will be imposed to prevent further injury being caused to the Union industry by the dumped imports from Indian exporters.
Background:
Countries initiate anti-dumping probes to check whether their domestic industry has been hurt because of low cost imports. As a counter-measure, they impose duties under the multilateral World Trade Organisation (WTO) regime.
Accordingly, earlier in December 2014, the Commission had initiated an anti-dumping investigation with regard to imports into the EU of tubes and pipes of ductile cast iron, used for drinking water supply, sewage disposal and irrigation of agricultural land, originating from India. The probe was initiated following complaints by Saint-Gobain PAM group on behalf of producers.
Possible Impacts:
While 15.3 per cent provisional anti-dumping duty has been imposed on exports by Electrosteel Casting Ltd, there would be 31.2 per cent levy on shipments from Jindal Saw Ltd and other companies.
Though the Indian import volumes increased significantly by over 22 per cent during October 2013 to September 2014, now with this provision, Indian exporters of these pipes to the EU market will be impacted hugely for sure.
Important points to remember:
- EU headquarters – Brussels, Belgium
- EU Member states – 28
- President of the European Commission – Jean-Claude Juncker
- President of the European Council – Donald Tusk