Indian industry is queuing for action against cheap imports after the government's swift action to protect steel producers.
Producers of solar panels and cells, tyres, rubber, aluminum foil and metallurgical coke have made representations to the government for safeguard duties against imports.
"There has been a surge in applications after the imposition of the safeguard duty on steel imports this month. Representations were made in the last two weeks from diverse sectors. We will examine these cases," said a finance ministry official.
Safeguard duties are measures to protect the local industry from a sudden surge in imports. The World Trade Organization does not allow such duties to be imposed for more than four years at a stretch.
Finance Minister Arun Jaitley announced a 20 per cent safeguard duty on imported hot-rolled steel to protect domestic producers struggling against cheap imports from China and countries with which India has free trade agreements. The duty has been imposed for 200 days, after which the director-general of safeguards will issue a report on whether the tax should continue.
India has rarely used trade safeguards, mainly because the domestic industry was unaware of them. Unlike the anti-dumping duty, which the government can initiate on its own, a safeguards investigation can only be initiated on complaints from local producers.
"A mere investigation can create ripples. Before we start an investigation, we have to be sure there is an injury. We cannot act unless there is serious injury. There are conflicting interests of producers and the users in many cases," another official pointed out.
The Indian Solar Manufacturers' Association has filed an application with the Directorate General of Safeguards for investigating the import of solar cells and panels. Their representation comes a year after the commerce department's proposal for an anti-dumping duty on solar cells shipments from China, the US and Malaysia was turned down by finance ministry, to favour solar power producers.
Recently, India lost a case filed by the US at the WTO on favouring the domestic industry for the Jawaharlal Nehru National Solar Mission.
So far Directorate General of Safeguards has investigated 25 cases. Safeguard duties have been imposed on seamless pipes and tubes, sodium citrate and fatty alcohols at the rate of 10 per cent, 20 per cent and 18 per cent, respectively.
"We want the domestic industry to look beyond anti-dumping measures. The anti-dumping duty can be imposed only if goods are imported at dumping prices. The safeguard duty can be imposed if goods enter in increased quantities," a government official said.
Even though the government hiked the import duty on rubber from 20 to 25 per cent in the budget in February, it has not helped contain imports. Rubber growers associations have sought safeguard duties.
The Automotive Tyre Manufacturers' Association, too, has sought safeguard tariffs on car tyre imports from China and South Korea.
