India has terminated a probe into an alleged increase in imports of a certain type of PVC resin from Japan following a request from the domestic industry.
The PVC resin is used in building and construction, automotive, and medical industries.
The Directorate General of Trade Remedies (DGTR), under the commerce ministry, in September 2020 initiated a bilateral safeguard investigation into imports of 'PVC (Polyvinyl Chloride) Suspension Grade Resin' from Japan.
DCW, DCM Shriram and Chemplast Cuddalore Vinyls had filed an application for initiation of the investigation.
The application was filed under the India-Japan free trade pact, officially dubbed as the Comprehensive Economic Partnership Agreement.
According to a termination order of the DGTR, in March this year, the domestic industry informed the directorate that they have decided to withdraw the application in view of changes in the market situation in recent period.
"In view of the aforesaid request made by the applicants, the director general hereby terminates the investigation initiated on September 8, 2020," it said.
The applicants had sought imposition of safeguard duty on the particular PVC resin.
Safeguard duty is imposed as part of trade remedy measures and is permitted under the global trade rules of the World Trade Organization. Both India and Japan are members of this organisation.
The duty helps in providing a level-playing field to the domestic industry in terms of pricing of a product in the domestic market. Pricing is a key component after quality of products in any market.
The bilateral trade between India and Japan fell to USD 15.4 billion in 2020-21 from about USD 17 billion in the previous fiscal year. Trade balance is in favour of Japan.
