Anti-Dumping Duties on Chinese Products: Impact on the Injured Indian Steel Industry

Abstract

China has a huge market share in the markets of developed and developing nations, due to their ability of mass production of goods at extremely low costs. However, in its bid to provide the cheapest products, China has failed to focus on the quality of products. Such a practice falls within the definition of “dumping”. This paper analyses the imposition of anti-dumping duty on the Chinese products and its impact on the Indian Steel Industry which is one of the worst affected industries because of the dumping practices of Chinese industries. The article is divided into 3 parts: Introduction which deals with anti-dumping duty, framework  (GATT 1994 and the Agreement for Implementation of Article VI of GATT 1994) for imposing anti-dumping duty and gives a brief background for the need to consider the case of Chinese products [i] Rationale for anti-dumping duties which explains the rationale for imposing anti-dumping duties on the products from China PR [ii] Imposition of Anti-Dumping duties on products from China PR which delves into the factors for imposition of the duty, elaborates upon the duties imposed on the steel products from China PR and attempts to gauge the effectiveness of the implementation of the anti-dumping duties [iii] and the last part, the Road ahead  deals with the challenges in and the repercussions of imposing these duties on the Chinese products. It summarizes the findings of the paper and possible suggestions for the need and implementation of the anti-dumping duties on Chinese products.