India Aluminum Wire Duty Review Targets Malaysian Imports
India’s Directorate General of Trade Remedies (DGTR) has recommended new countervailing duties on specific aluminum wire imports from Malaysia for a five-year period. This India Aluminum Wire Duty Review aims to protect domestic producers from the impact of subsidized products entering the Indian market.
DGTR Recommends Countervailing Duties
According to reports in The Economic Times, DGTR concluded that definitive countervailing duties are necessary to offset government-backed subsidies benefiting Malaysian exporters. The authority proposed duty rates of 6.87% and 16.5%, depending on the producer.
However, India’s finance ministry must approve these recommendations before they take effect. DGTR launched the original probe after Vedanta Ltd and Bharat Aluminium Company Ltd (BALCO) filed complaints on behalf of domestic aluminum wire manufacturers.
Sunset Review of Steel Wire Rod Duties from China
At the same time, DGTR has opened an anti-dumping (AD) duty sunset review for steel wire rod imports from China. This review will decide whether to continue measures first imposed in 2016. The investigation period runs from October 1, 2019, to March 31, 2021.
The Indian Steel Association supports the case on behalf of key domestic producers, including Rashtriya Ispat Nigam Limited, Steel Authority of India Limited (SAIL), and JSW Steel. DGTR stated that ending the duties would likely harm local wire rod manufacturers by exposing them to renewed dumping from Chinese suppliers.
Background on Earlier Anti-dumping Measures
India first imposed anti-dumping duties on certain steel products, including steel wire rods from China, in 2016. At that time, authorities set duties equal to the difference between the landed value of the products and benchmark prices, such as US$499 per metric ton for goods from Minmetals Yingkou Medium Plate Co. and US$538 per metric ton for other producers.
These trade remedies aim to prevent unfair pricing practices and maintain a level playing field for domestic steel and aluminum manufacturers in India.
