India Imposes USD 121.55 Per Tonne Anti-Dumping Duty on Vietnamese Steel for Five Years: Protecting Domestic Industry

India has implemented an anti-dumping duty of USD 121.55 per tonne on hot rolled flat steel products imported from Vietnam, effective for a five-year period.

This protective measure aims to shield domestic steel manufacturers from the negative impact of low-priced imports.

According to Thursday's finance ministry notification, the Directorate General of Trade Remedies (DGTR) recommended this duty following their investigation.

The notification states: "The anti-dumping duty imposed under this notification shall be effective for a period of five years (unless revoked, superseded or amended earlier) from the date of publication of this notification."

This investigation was initiated after the steel industry requested an examination into alleged dumping practices of Vietnamese steel products in the Indian market. While steel producers have welcomed this protective measure, user industries have expressed opposition.

Countries conduct anti-dumping investigations to assess whether their domestic industries have suffered harm due to surges in inexpensive imports.

As a countermeasure, nations impose these duties under the regulatory framework of the Geneva-based World Trade Organization (WTO). Such duties aim to ensure fair trade practices and create equitable conditions for domestic producers relative to foreign manufacturers and exporters.

Both India and Vietnam are members of the 166-member WTO. Additionally, India maintains a free trade agreement with ASEAN (Association of Southeast Asian Nations), a 10-nation bloc that includes Vietnam, since January 2010.

The bilateral trade between India and Vietnam reached USD 14.81 billion in 2023-24, compared to USD 14.7 billion in the previous fiscal year. India's exports totaled USD 5.47 billion, while imports amounted to USD 9.34 billion in the last fiscal year, resulting in a trade deficit of USD 3.87 billion in Vietnam's favor.