Economy

US begins probe into alleged dumping of alloy steel rods from India, other nations

PTI New Delhi | Updated on April 30, 2019 Published on April 30, 2019

The US has initiated a probe into alleged dumping of a particular variety of steel rod from four countries including India, according to American Department of Commerce.

In a statement, the Department 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.

The statement said that there are 52 subsidy programmes of India, including duty drawback, loan guarantees, and a duty free import authorisation scheme. In 2018, imports of carbon and alloy steel threaded rod from India stood at $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.

“Anti-dumping 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 anti-dumping 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 $47.9 billion, while imports were $26.7 billion. The trade balance is in favour of India.

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Published on April 30, 2019
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