India decides to probe dumping allegation

India has decided to launch an investigation into allegation of dumping hydrogen peroxide on its market by Bangladesh without properly following SAFTA rules, trade officials have said.  
After investigation the country may consider slapping anti-dumping duty on export of the item from Bangladesh, they added.
At the same time, India is also considering same countervailing measures against the Republic of Korea, Taiwan, Indonesia, Pakistan and Thailand.
The Directorate General of Anti-Dumping and Allied Duties of India recently notified Bangladesh High Commission in New Delhi about the planned investigation as local industries alleged that these countries are dumping the item there.
A senior official of Bangladesh Tariff Commission (BTC) told the FE that India did not follow Article 11 (A) of the SAFTA (South Asian Free Trade Area) agreement before initiating such investigation.
He pointed out that according to the Article 11 (A), before considering anti-dumping measures against least-developed contracting states the countries have to be given the scope of consultation in this regard.
The Article reads: "The Contracting States shall give special regard to the situation of the Least Developed Constructing States when considering the application of anti-dumping and/or countervailing measures. In this regard, the Contracting States shall provide an opportunity to least developed contracting states for consultations.
The Contracting States shall, to the extent practical, favourably consider accepting price undertakings offered by exporters from least developed contracting states. These constructive remedies shall be available until the trade liberalization programme has been completed by all Contracting States."     
The official said until now, Bangladesh had not received any notification of consultation from India rather got a notification on starting investigation. "Taking any measure without consultation in this case will be a clear violation of SAFTA rules," he said.
He said the BTC has informed the Ministry of Foreign Affairs to inform the Indian authority concerned about the violation of the rules of the regional treaty and give Bangladesh the scope of consultation before starting investigation or taking any measure.   
Sources said only four Bangladeshi companies produce hydrogen peroxide but all of them do not export the item to India.    
Statistics show country's export volume of hydrogen peroxide still very small. In fiscal year 2014-15 Bangladesh exported hydrogen peroxide worth US$5.24 million to India.
Hydrogen peroxide has both industrial and medical use. Use of the item is near about 60 per cent in industrial production in India.
"We are taking preparation to face the Indian allegation of dumping of the item. Soon we will hold a meeting in this regard," said the BTC official.  Recently India 'barred' export of jute and jute goods from Bangladesh by issuing a notification which had asked all of its importers to get fresh registration and take no-objection certificate from its Jute Commission for each import consignment.  Even it asked the importers to submit details of all users of the imported jute and jute goods.
However, in the face of strong protest by Bangladesh, the Jute Commission of India has relaxed some provisions of the notification but did not exempt importers, traders, and end-users from getting registered with its office.
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