In response to a complaint from domestic manufacturers, the government has initiated a countervailing duty (CVD) investigation into the rising imports of Calcium Carbonate Filler Masterbatch from Vietnam. This move aims to protect Indian manufacturers from the adverse effects of subsidized imports.
Domestic Associations File Petition
The investigation follows a petition filed by the Compounds and Masterbatch Manufacturers Association of India and the Masterbatch Manufacturers Association.
These groups represent domestic industries and have urged the Directorate General of Trade Remedies (DGTR), an arm of the Ministry of Commerce, to examine the imports of this chemical from Vietnam.
Allegations of Unfair Subsidization
According to the petitioners, calcium carbonate filler masterbatch is being imported into India from Vietnam at significantly subsidized prices, in large quantities, over an extended period.
They claim that these imports are causing material harm to the domestic industry. In response, the applicants have requested the imposition of countervailing duties on these products.
DGTR Investigation Underway
The DGTR has stated that based on the evidence provided by the domestic industry, it is initiating an investigation into the alleged subsidization of this chemical.
The agency will assess the degree and impact of the subsidies and determine the appropriate amount of duty required to offset the injury caused to domestic producers.
Impact of Subsidies from Vietnam
The petitioners allege that the producers and exporters of calcium carbonate filler masterbatch in Vietnam are benefiting from various subsidies. These subsidies are provided by the Vietnamese government at the national, provincial, and municipal levels.
The DGTR will look into these claims during its investigation.
Countervailing Duty: A Tool to Protect Domestic Industry
A countervailing duty is designed to protect domestic industries from unfair trade practices. It does so by imposing a country-specific levy on subsidized imports.
India has previously applied both countervailing and anti-dumping duties on imports from countries like China. These duties are particularly focused on sectors like steel to safeguard local players.
Trade Relations with Vietnam
Vietnam is an important trade partner for India within the ASEAN region.
In 2023-24, India’s exports to Vietnam totalled $5.47 billion, while imports from the country amounted to USD 9.34 billion.
As reported by theweek.in, the ongoing investigation highlights growing concerns. These concerns focus on the impact of subsidized imports on India’s domestic industries.
