REZAUL KARIM |
June 27, 2021, 8:44 a.m.
India may soon add another item — clear float glass (CFG) — to the list of Bangladesh exports subject to anti-dumping duties (ADD).
CFG, exported by Bangladesh, could face ADD for five years, officials said.
Local Indian producers have asked the Director General of Trade Remedies (DGTR) of the Ministry of Trade and Industry to impose ADD on CFG.
DGTR recently told the Bangladesh High Commission in New Delhi that local industries accused Bangladeshi exporters of dumping CFG in India.
The high commission therefore called on the relevant ministry in Bangladesh to immediately take the necessary measures to this end.
Any Indian imposition of ADD on clear float glass will deal a serious blow to Bangladesh’s overall export to India. Float glass has huge potential in the Indian market, he said.
Currently India imposes anti-dumping duties on Bangladeshi jute articles, hydrogen peroxide and fishing nets.
According to a senior Commerce Ministry official, it will be a blatant violation of SAFTA rules if India initiates an investigation into the dumping allegation without consulting Bangladesh.
In accordance with existing SAFTA rules, he said, before considering anti-dumping measures against least developed contracting states, they should be given the opportunity to consult in this regard.
“Contracting States will pay particular attention to the situation of least developed Contracting States when considering the application of anti-dumping and / or countervailing measures”, in accordance with Article 11 (A) of the Rules.
“In this regard, the Contracting States shall offer the least developed Contracting States the possibility of consulting one another. Contracting States will, to the extent possible, consider favorably accepting price undertakings offered by exporters from least developed Contracting States.
In March, five MoUs were signed between Bangladesh and India in Dhaka to strengthen cooperation, an official told FE.
Among them, one concerned the establishment of a framework for cooperation in the field of trade remedies between the two countries.
It was mentioned not to take any steps regarding measures / investigations on ADD without consultation with the country concerned, added the official.
Md Hafizur Rahman, additional trade secretary and director general of the WTO cell, said they would sit down with relevant stakeholders to take the necessary action if India opens an investigation in this regard.
“We will take the necessary information and arguments from the exporters concerned at the meeting,” he added.
Glass shipments to the Indian market have increased in recent years.
Bangladesh exported glass sheets worth over $ 0.7 million to India in fiscal year 2019-2020.
The volume of exports of these products increased significantly in fiscal year 2020-21.
Its exports to the market increased 357 percent to $ 3.39 million in 11 months of the current fiscal year from the previous fiscal year.
Currently, three companies export clear float glass to India.
CFG is typically used in the window, refrigeration, construction, automotive, mirror, and solar power industries.
An anti-dumping duty is a protectionist tariff that a national government imposes on foreign imports that it believes are priced below fair market value, according to investopedia.com.
The law aims to ensure fair business practices and to create a level playing field between domestic producers and foreign exporters / producers.
Previously, India imposed anti-dumping duties on Bangladesh jute yarn, burlap and sacks in January 2017, ranging from $ 19 to $ 352 per tonne.
A similar duty was imposed on exports of hydrogen peroxide to India between $ 27.81 and $ 91.47 per tonne in April 2017.
Hydrogen peroxide is a textile chemical produced in Bangladesh.
A year later, India imposed an anti-dumping duty of $ 2.69 per kilogram on the shipment of fishing nets from Bangladesh.