The US has initiated a probe into alleged dumping a particular variety of steel rod from four countries including India, according to American department of commerce. In a statement, the department has said that it is also probing whether producers of 'carbon and alloy steel threaded rod' in India and China are receiving 'unfair' subsidies from their respective governments.
If it is established that the dumped imports and subsidies are hurting the interest of companies there, the US would impose anti-dumping and countervailing duties. And if it would not find anything, the department would terminate the investigations.
If the department makes an affirmative finding in these investigations, and if the US International Trade Commission determines that dumped and the "unfairly subsidised" imports from China, India, and Taiwan are causing injury to the industry, it "will impose duties on those imports in the amount of dumping and/or unfair subsidisation found to exist," it said.
The statement said that there are 52 subsidy programmes of India, including duty drawback, loan guarantees, and a duty free import authorization scheme.
In 2018, imports of carbon and alloy steel threaded rod from India stood at USD 35.8 million.
It added that final determinations in these cases are scheduled for July 31, for the countervailing investigations, and October 15 for the anti-dumping probe, but these dates can be extended.
"Antidumping and countervailing duty laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of the unfair pricing of imports into the US," it said.
Foreign companies that price their products in the US market below the cost of production or below prices in their home markets are subject to antidumping duties.
Companies that receive unfair subsidies from their governments, such as grants, loans, equity infusions, tax breaks, or production inputs, are subject to countervailing duties aimed at directly countering those subsidies.
India's exports to the US in 2017-18 stood at USD 47.9 billion, while imports were USD 26.7 billion. The trade balance is in favour of India.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today