China’s new move means difficulties
New Delhi: Reports of dumping of Chinese products in India often arise. The question is whether India also dumps its products in China. China has decided to impose anti-dumping duties on cypermethrin imported from India, which came into effect on January 8.
China’s Ministry of Commerce made the announcement. The ministry’s preliminary investigation found evidence of dumping. Cypermethrin is a pesticide. It controls pests in crops such as cotton, vegetables, corn, and flowers. It is also used in agriculture and sanitation.
What does China’s move mean?
China has imposed an additional charge on cypermethrin coming from India. This charge is being levied because China believes that India is selling cypermethrin in China at a very low price which is harming China’s domestic producers.
What is anti-dumping?
Anti-dumping is a trade rule used by one country to prevent another country’s products from being sold in its market at low prices.
Suppose a country believes that another country is selling its products at very low prices in its market, harming its domestic industries. In that case, it can impose anti-dumping duties on that product.
What impact will this have on India?
First, exports of cypermethrin from India to China may decrease. The reason is that Indian products will now have to pay a higher price to be sold in China. Second, cypermethrin is widely used in the agricultural sector. Therefore, the decrease in exports could negatively impact the income of Indian farmers. Third, it could also affect trade relations with other countries because other countries may adopt similar measures.
