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5th July 2025 (10 Topics)

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.

  1. 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).
  1. 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.
  1. 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.

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