DGTR has initiated investigation whether subsidy programs for export of Saturated Fatty Alcohols are affecting the domestic industry.
India has launched a probe into alleged subsidies by Indonesia, Malaysia and Thailand on exports of chemicals used in making personal care products such as shampoo, soap and detergents, affecting the domestic industry, according to a notification.
Following a complaint by a domestic firm, the Directorate General of Trade Remedies (DGTR), the investigative arm of the commerce ministry, has launched an inquiry into whether subsidy programs for export of saturated fatty alcohol from these countries are affecting the domestic industry.
VVF India Limited has filed an application before the directorate alleging subsidies on this liquor from Indonesia, Malaysia and Thailand. The company has requested these countries to initiate an anti-subsidy probe to levy countervailing duty on imports.
The company has alleged that the producers and exporters of the product in these countries have benefited from the subsidies provided by their respective governments at various levels.
In a notification, the Directorate stated that there is Prima facie Evidence of the existence of “comparable subsidies” on the production and/or export of goods in these countries and such subsidized imports are causing material injury to the domestic industry through their volume and price effects.
“In view of the above position, the Authority hereby initiates an inquiry into the alleged subsidization and consequent threat of material injury and injury to the domestic industry,” it said.
“This will determine the existence, degree and effect of the alleged subsidy.”
If it is established that the subsidies provided by these countries are affecting the domestic industry, the DGTR will recommend the amount of countervailing duty, which, if levied, will be required to offset the injury to the domestic industry. will suffice.
Under the World Trade Organization’s (WTO) global trade rules, a member country is allowed to impose anti-subsidy or countervailing duties if a product is subsidized by its trading partner’s government.
These duties are trade measures to protect the domestic industry. Subsidy on a product makes it price-competitive in other markets. Countries provide it to boost their exports.
These three countries are important trading partners of India and all of them are members of this multilateral organization – WTO based in Geneva.
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