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FTA misuse hitting us - Jindal Stainless

Steel News - Published on Wed, 29 Aug 2018

Image Source: SteelGuru
Times of India reported that a surge in imports from China and countries with which India has signed free trade agreements (FTAs) is heaping misery on the domestic stainless steel manufacturers, prompting them to seek more permanent measures to stem inflows as excess capacity in China and in countries such as Japan and Korea and their attention to the Indian market is posing a stiff challenge to the domestic steel makers. Mr Abhyuday Jindal, MD of Jindal Stainless (Hisar), said β€œIt has become a huge problem. Jobs are getting lost and causing tremendous disruption. It is being dumped via Japan, Korea, Vietnam and Indonesia using the FTA route. Earlier around 800-1,000 tonnes used to be dumped, but between January to May this year about 6,000 tonnes have already come in.”

Domestic manufacturers say the market for stainless steel is limited in Indonesia and the new capacity that is being added could be headed for India. The ongoing trade war between the US and China has also added an element of uncertainty. They are now demanding that steel should be excluded from FTAs that India has signed.

Given the scale of the problem, government has attempted several steps such as imposing anti-dumping duties, countervailing duties, quality control and anti circumvention measures but the problem persists. Studies conducted by the industry have shown that despite the measures undertaken by the government to stem dumping of steel, imports account for nearly 20% of the domestic market.
New capacities in Indonesia riding on the back of Chinese investments also pose a threat to the domestic market.

Source :

Posted By : Sanju Moirangthem on Wed, 29 Aug 2018
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