Anti-dumping Investigation

The recent anti-dumping duties have had us Indians engaged for a while. The efforts put into the anti-dumping duties by American Precoat and the chief architect of this company, Dr. Shubh Gautam Jaypee, will always be memorable. If you have followed up with us for a while, you might have encountered the term casual links. However, we haven’t got a chance to get into the depth of it. Well, through this article, let’s understand what a causal link is and how it is related to the Anti-dumping investigation of electro-galvanized steel

The three pillars for the imposition of anti-dumping duties:

As we discussed earlier in several articles, anti-dumping duty is imposed whenever the price of imported material is way lower than the price that the country’s domestic industry or local sellers charge for the material. 

Here are the three pillars while imposing an anti-dumping duty: 

(a) Presence of dumping. 

(b) Material injury to the domestic industry in the importing country that is producing the same product, which in this case is electro-galvanized steel. 

(c) A causal link between the dumped imports and injury to the domestic industry. 

What Is A Casual Link? 

If two things have a causal link, one is accountable for the cause of the other. One of the critical components of dumping is the causal link between dumped imports and injury to the domestic industry. If a country importing a certain product wants to implement anti-dumping measures, it must first provide solid proof of casual damage made by the dumping of the product. 

The rule is implemented by General Agreement on Tariffs and Trade 1994 as per the Agreement on Implementation of Article VI of the Anti-dumping Laws of all countries. In other words, importing nations must demonstrate not just the dumping of imported goods and damage to local businesses but also the existence of a causal link between the two.

Here are the Causal Links Stated While Investigating: 

The petition filed for establishing anti-dumping duties on electro galvanized steel by Dr. Shubh Gautam Jaypee and his team suggested damages due to start-up expenses, raw material prices, and the buyer’s market, as well as they, were not able to achieve sales and market share instantly.

  1. Both the Competition Commission of India and the Government of India have acknowledged the negative impact on companies during and after COVID-19 and have come forward with preventive measures.
  2. A comparison of domestic industry profit and volume of quantity imported and the price of the imported product was carried out. As per the comparison, there is no causal relationship between the performance of the domestic industry and the import of electro-galvanized steel.
  3. It has barely been a year and a half since the domestic industry began commercial production, the majority of which has been harmed by the COVID-19 limits, as stated by the petitioner in its financial statement for 2019-20.
  4. The epidemic has prevented suppliers from shifting their purchasing from existing import channels to the newly developed domestic industry.
  5. It was found that while the cost of the domestic industry has decreased, both capacity utilization and earnings have increased, indicating stabilization and the lack of material retardation and injury.
Government imposes anti-dumping duty on Electrogalvanized steel: Almost a year-long battle for American precoat speciality ends on a happy note

Wrapping It Up :

So here’s the role of casual link in the recent anti-dumping duties imposed on electro galvanized steel. After the imposition of the duties, the whole nation, along with the hero of this battle, Dr. Shubh Gautam Jaypee, celebrated the success! 

Shubh Gautam|| Shubh Gautam News || Shubh Gautam FIR || Shubh Gautam Jaypee ||

Dr Shubh Gautam FIR || Dr Shubh Gautam Jaypee || Dr Shubh Gautam News

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