Bangladesh wants India to remove anti-dumping duties on jute products

Bangladesh wants India to remove anti-dumping duties on imports of certain jute products. India had extended these tariffs for five years in January this year, but New Delhi was reluctant to do so, the sources said. The neighboring country is also trying to prevent India from trying to impose countervailing or subsidizing tariffs. This would stop exports to India and further hurt farmers, the sources added. “The government of Bangladesh wants India to end anti-dumping duty on jute products, which was extended for another five years in January this year. It also wants India not to plan countervailing duties, as it says the additional punitive duties would force. many jute mills to shut down,” a person following the matter told Businessline.

However, India has no plans to withdraw anti-dumping duty. “The government of Bangladesh has made it clear that the country is growing jute on specific land that is not suitable for anyone else. If Bangladeshi farmers do not export jute and jute products to India due to dumping and other tariffs, they will suffer financially. But India must also take care of their own farmers who are not rich,” the source said. India’s anti-dumping duties on Bangladesh jute products are in line with WTO rules and any future action by India would also fall under multilateral trade rules, the source added. The WTO allows the imposition of anti-dumping taxes on imports if it is proven beyond a reasonable doubt that the price of the commodity is lower than the price of the product in the market of the exporting country. An importing country can impose CVD on a product if the exporting country subsidizes its producers to produce it. There are no CVD books for jute from Bangladesh. Under the provisions of the South Asian Free Trade Agreement, Bangladesh enjoys duty-free access to India for most products, including jute. The subsidy provided by the Bangladeshi government to the jute industry led to a flood of cheap jute products in the Indian market, with which the Indian industry and farmers found it difficult to compete. India first imposed an anti-dumping duty on jute products, including jute yarn or thread, hessian cloth, jute bags, and jute burlap from Bangladesh and Nepal in 2017 for a period of five years ending on 31 December 2022. The dumping duty ranged from 6.03 to 351, $72 per ton. The Directorate General of Trade Remedies (DGTR) investigated a petition submitted by the Jute Manufacturers’ Association of India for the continuation of payments. 

The review, concluded that the dumping of products originating in Nepal and Bangladesh continues and that imports at dumped prices are likely to enter the Indian market after the current duty expires. As a result, the anti-dumping duties were extended for another five years. Bangladesh is also worried that India may impose additional CVD charges on jute, which could stop exports to India altogether. After India imposed an anti-dumping duty (ADD) on jute products in January 2017, the Bangladesh government’s subsidies to the industry increased, according to industry sources.”Negotiations are ongoing with Bangladesh on jute exports to India. Both countries want to resolve their concerns amicably,” the source said.

Leave a Reply

Your email address will not be published. Required fields are marked *