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Of late, India appears to be facing fewer dumping threats, which has prompted it to take fewer anti-dumping steps.
The World Trade Organisation in a review said India has initiated 80 anti-dumping investigations against 23 trading partners in the past four years, but has not imposed any anti-dumping measures on any of its partners.
In contrast, India had imposed 207 anti-dumping measures during the previous four-year review period between 2007 and 2011. During this period, the country had initiated 209 anti-dumping investigations against 34 trading partners.
In its sixth and latest review of India’s policy actions on the international trade front, WTO said India remained one of the most active users of anti-dumping measures. However, the WTO data suggested a gradual fall in its anti-dumping actions.
The sixth review of India’s trade policies and practices is currently under way (from June 2 to 4). The basis for the review is a report by the WTO Secretariat and one from the Government of India.
During 2011-2015, India made significant changes in its anti-dumping legislation including new rules defining situations that are considered to represent the circumvention of anti-dumping duties, and providing for anti-circumvention investigations. India initiated one countervailing investigation between 2011 and 2015. Since its last review, India has also initiated 18 safeguard investigations, WTO noted in its latest review report.
Average MFN rate up
India’s simple average tariff rate for most favoured nation (MFN status allowed to all WTO members) rose to 13 per cent in 2014-15, up from 12 per cent in 2010-11. “This reflects a rise in tariffs in agriculture, particularly for cereals and preparations, oilseeds and fats, and sugars and confectionary,” WTO noted.
India’s largest proportion of tariff lines (71.7 per cent) in 2014-15 was subject to a tariff rate between 5 and 10 per cent, while 10.7 per cent of lines were subject to a tariff rate greater than zero but lower than 5 per cent. The percentage of duty-free lines has declined slightly, from 3.2 to 2.7 per cent of the total.
New accent
WTO also noted India’s new accent on regional agreements despite being a strong advocate of the multilateral trading system. “India is a strong advocate of the multilateral trading system and has historically been party to a few regional trade agreements. However, despite India’s reservations, regionalism has increasingly become an element of its overall trade policy objective of enhanced market access for its exports. This is evidenced by 15 agreements currently in force and its involvement in the negotiation of other agreements,” WTO observed.
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