During the period between 20, ADD has been imposed on a total of 121 commodities.India has imposed anti-dumping duties (ADDs) on a total of 155 commodities against China across many sectors to protect the domestic industry since 2001. India’s anti-dumping duties are mostly aimed at developing nations.India has filed roughly 20 per cent of all global anti-dumping cases, quite disproportionate to its share of global imports of 2%.India imposed its first anti-dumping duty in 1992 and over the past decade, it has become the world’s leading user of anti-dumping measures.In recent decades, these measures have assumed a great deal of relevance in India given the scenario arising out of unfair trade practices adopted by some of our trading partners.India is a member of the World Trade Organisation (WTO) and the WTO under its existing arrangement and in terms of various provisions under the Customs Tariff Act of 1975 (as amended in 1995) and Rules framed thereunder permits the imposition of anti-dumping and allied measures by its member countries.However, with the entrance of foreign businesses into the Indian market, certain unfair trade practices also entered such as dumping.

These economic reforms allowed foreign businesses to enter India’s domestic market and compete at par with domestic producers. The New Economic Policy led to the relicensing of industries, removal of restriction on growth import liberalization etc.India could not remain aloof of what was happening worldwide and thus it opened its market to the world adopting the New Economic Policy in 1991, also known as the LPG (Liberalization, Privatisation and Globalisation) reforms.Globalization brought about a new era of international trade.Such measures are not against unfair trade practices rather they usually apply to the sudden surges in imports of those products which may harm the domestic industry.Safeguards are directed against those situations in which a product is being imported into a country in such increased quantities that it causes, or threatens to cause, serious injury to the domestic industry that produces “like or directly competitive” products.

CVDs help in offsetting the negative effects of subsidisation.

CVDs raise the price of the imported product thus helping in ensuring a level playing field to the domestic producers against those foreign producers who export products in the former’s market by receiving subsidies in their home country.

It nullifies and eliminates the price advantage (low price) enjoyed by an imported product when it is given subsidies or exempted from domestic taxes in the country where they are manufactured.

To counter such subsidisation, countries may adopt anti-subsidy and countervailing duties.Countervailing Duties (CVDs) refer to such tariffs that are levied on imported goods to offset subsidies made to producers of these goods in the exporting country.

Subsidisation may have adverse effects on the domestic economy and may also limit or displace the exports of another country.

Subsidisation is when an exporter provides financial assistance to manufacturers or companies to produce or export goods.

Anti-subsidy and countervailing measures.

Anti-dumping duty (ADD) refers to a protectionist tariff imposed by a domestic government on such foreign products that may be considered to be ‘dumped’ or are priced below fair market value.

Dumping is considered to be an unfair trade practice and has a distortive effect on international trade as it often leads to predatory pricing.

Dumping takes place when an exporter sells a product in a foreign market below the price of “like products” (the same type and quality of goods) charged in the exporter’s domestic market or below the cost of production.

The main types of trade defence instruments include:.

The Agreement on Subsidies and Countervailing Measures.

The Agreements on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (commonly known as the Anti-dumping Agreement).

Trade defence strategies or “trade remedies” are provided for or mentioned in three separate global agreements.

Trade defence is usually practised to counter perceived abuses in the international trade of goods.

It refers to those measures or practices that a nation adopts to protect its domestic trade or business against imports that are unfairly traded or subsidised and that may cause considerable harm to the domestic businesses and manufacturers.

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