In a global market there are a number of checks and balances that countries can use to protect their industries. One of those measures is the use of anti-dumping duties.
If a company exports a product at a price lower than the price it normally charges on its own home market, it is said to be “dumping” the product. An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value.
In early April, India imposed another five years of anti-dumping duties on Chinese, Korean, and Thai aluminum alloy wheels. The Indian government said it was guarding against cheap imports that challenged domestic production.
The duty would be in the range of US $0.08 per kg to US$2.15 per kg.
“The continued injury to the domestic industry on account of dumped imports is likely to continue if the anti-dumping duties from subject countries cease to exist,” stated the Directorate General of Trade Remedies (DGTR) to the Economic Times.
Imports of aluminium alloy wheels to India have increased from 15,878 tonnes in 2014-15 to 21,042 tonnes in 2017-18.
At the end of March, Indonesia extended anti-dumping import duties of up to 20% for flat-rolled iron and steel products from seven countries, including China.
The duties, which have been in place since 2013, affect Chinese giants Angang Steel Co and Baoshan Iron and Steel Co., according to Reuters. Indonesia also set an 11.9% anti-dumping duty on other iron and steel products from China.
Indonesia imported 1.79 million tonnes of product from China in 2018. The country is the fifth largest market for Chinese flat steel products, according to the IHS Markit Global Trade Atlas, behind Vietnam, South Korea, the Philippines and Thailand.
On its end, China is set to impose anti-dumping measures in stainless steel billet and hot-rolled stainless steel plate from Indonesia.
Almost two-thirds of China’s stainless steel imports in 2017 came from Indonesia, up from just 5% in 2016.