News Brief
EU Slaps Anti-Dumping Duties On Indian Fiber Cable Makers, Mirroring Action Against China— All About It
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The European Commission's Directorate General for Trade has imposed provisional anti-dumping duties on nearly a dozen Indian optical fiber cable manufacturers, ranging from 8.7 per cent to 11.4 per cent.
The move exempts imports from HFCL Ltd and its subsidiary HTL Ltd.
The Commission's order, issued on 14 June, imposes an 8.7 per cent duty on exports from Birla Cable Ltd, Universal Cables Ltd, and Vindhya Telelinks Ltd to the European Union.
Sterlite Technologies and Sterlite Tech Cables Solutions Ltd will face a higher duty of 11.4 per cent.
Meanwhile, Aberdare Technologies Private Ltd, Aksh Optifibre Ltd, Apar Industries Ltd, Polycab India Ltd, UM Cables Ltd, and ZTT India Private Ltd are subjected to a 9.9 per cent duty. All other exporters will incur an 11.4 per cent duty.
““This decision is a huge achievement for us and speaks volumes about the trust that we have garnered globally for our fair-trade practices and transparency of processes,” Mahendra Nahata, managing director at HFCL, said in a statement to the BSE on Monday.
“We believe this decision will enable us to play a central role in Europe’s digital transformation," Nahata added.
The order comes after an investigation by the European trade agency that began in October last year, following complaints from the European optical fiber cable industry, represented by Europacable, about dumping by Indian exporters.
In November 2023, notices were sent to Indian manufacturers requesting extensive data on manufacturing, sales, exports, and pricing for the period from October 2022 to September 2023.
This validation aimed to determine whether Indian manufacturers were pricing their export products lower than their domestic sales prices or below their cost.
The decision to levy anti-dumping duties follows similar measures imposed on OFC imports from China in November 2021, which have since been increased.
In international trade, dumping occurs when a country or firm exports a product at a price lower than the price in its domestic market, potentially harming local manufacturers in the importing country.
Global trade norms allow countries to impose tariffs on dumped products to provide a level playing field for domestic manufacturers and ensure fair trading practices.
Sterlite Technologies Ltd emphasized that the levy is a preliminary disclosure and will undergo further reviews and consultations.
"It is important to clarify that this is an initial step of the process, which will be followed by thorough consultation and review," a spokesperson said in a statement to Livemint.
“With our Optical Fibre Cable and Optical Connectivity manufacturing in Italy, we have been a trusted partner in the European region for over two decades, working hand in hand with the local service providers to further their country’s fiberisation ambitions. We are constructively engaging with the EU authorities and are confident that a comprehensive evaluation will further reinforce our steadfast commitment towards fair competition and advancement of Europe’s digital connectivity goals,” the spokesperson added.
