• Source:JND
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China has announced the imposition of anti-dumping duties on cypermethrin imports from India, following a final finding of dumping and harm to Chinese producers. The duties will remain in effect for five years, starting May 7, 2025, according to a statement from China’s Ministry of Commerce.

Cypermethrin is a widely used agricultural insecticide, effective in controlling pests across crops such as cotton, corn, vegetables, and flowers. It also plays a key role in sanitation and pest control in both rural and urban settings.

What Are Anti-Dumping Duties?

Anti-dumping duties are trade measures imposed by a country to protect its domestic industries from cheap, unfair imports. These duties are levied when an imported product is sold at a price lower than its normal value in the exporter’s home market this practice is referred to as “dumping.” Such measures are permitted under the World Trade Organization (WTO) rules, specifically under Article 6 of the General Agreement on Tariffs and Trade (GATT) and the Anti-Dumping Agreement, which aim to promote fair competition and prevent market distortion.

Why China Took Action?

China’s move follows a detailed investigation by its commerce ministry, which concluded that exporters were selling cypermethrin at unfairly low prices, undercutting local Chinese manufacturers and causing them economic harm. The final determination is consistent with global trade norms. While anti-dumping probes are often contentious, they are recognized tools under WTO guidelines to restore level playing fields for domestic producers.

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India, too, frequently initiates anti-dumping measures through the Directorate General of Trade Remedies (DGTR), the wing of the Commerce Ministry. DGTR assesses whether foreign goods entering Indian markets are harming domestic industries due to predatory pricing practices. The latest development could strain India-China trade relations further, especially in the chemical and agro-product sectors. Indian exporters of cypermethrin are likely to face higher tariffs, reducing their competitiveness in the Chinese market.

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