NEW DELHI, July 12:
India has terminated an investigation into an alleged increase in imports of a certain type of PVC resin from Japan following a request by the domestic industry.
PVC resin is used in the building and construction, automotive and medical industries.
The General Trade Remedies Directorate (DGTR), under the Ministry of Commerce, opened in September 2020 a bilateral safeguard investigation on imports of “quality suspended PVC resin (polyvinyl chloride)” from Japan.
DCW, DCM Shriram and Chemplast Cuddalore Vinyls had filed a request to initiate the investigation.
The request was filed under the India-Japan Free Trade Pact, officially known as the Comprehensive Economic Partnership Agreement.
Pursuant to a termination order from the DGTR, in March of this year, the domestic industry informed management that it had decided to withdraw the application due to changes in the market situation in the recent period. .
“In view of the aforementioned request made by the applicants, the Director General terminates the investigation opened on September 8, 2020,” he said.
The applicants had requested the imposition of a safeguard duty on the PVC resin in question.
The safeguard duty is imposed as part of trade remedy measures and is permitted under the global trade rules of the World Trade Organization. India and Japan are members of this organization.
The law helps to provide a level playing field for the domestic industry in terms of the price of a product in the domestic market. Price is a key factor after product quality in any market.
Bilateral trade between India and Japan fell to $ 15.4 billion in 2020-2021, from around $ 17 billion in the previous fiscal year. The trade balance is in favor of Japan. (PTI)