Anti-Dumping Duties

Context

China has announced anti-dumping duties ranging from 27.7% to 34.9% on European brandy imports, particularly French cognac. These duties, effective for five years starting July 6, 2025, were introduced following an investigation into unfair trade practices, and are seen as a response to the European Union’s probe into Chinese electric vehicle (EV) subsidies.

What is Anti-Dumping Duty?

An anti-dumping duty is a trade protection measure imposed by a country to protect its domestic industry from foreign imports priced below fair market value.
It is permitted under the World Trade Organization (WTO) framework, specifically the Agreement on Implementation of Article VI of GATT 1994 (Anti-Dumping Agreement).

China-EU Trade Tensions:

The anti-dumping duties follow the EU's investigation into subsidies for Chinese EV manufacturers, hinting at escalating trade disputes between China and Western economies.
China has responded with reciprocal investigations and now, duties on EU goods—indicative of growing economic retaliation.

Implications for India:

India, as a WTO member and active trade participant, frequently uses anti-dumping measures through the Directorate General of Trade Remedies (DGTR).
Monitoring global trade tensions helps assess spillover effects on Indian exports, global supply chains, and India-EU or India-China trade strategies.