Directorate General of Trade Remedies

Directorate General of Trade Remedies Latest News

Trade Ministry Recommends 12% Duty on Steel Imports Amid ‘Trade Diversion’ Concerns

About Directorate General of Trade Remedies (DGTR)

• Established: May 17, 2018 (formerly Directorate General of Anti-Dumping and Allied Duties).
• Nodal Ministry: Department of Commerce, Ministry of Commerce and Industry.
• Purpose: Acts as India’s anti-dumping watchdog, ensuring a level playing field for domestic industries against unfair trade practices like dumping, subsidization, and import surges.

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Functions of DGTR

• Conducts anti-dumping investigations and makes recommendations to the Government of India (GoI).
• Handles anti-subsidy (Countervailing Duty – CVD) investigations and advises the GoI.
• Examines safeguard measures to protect Indian industries.
• Manages litigation in CESTAT, High Courts, and the Supreme Court of India.
• Engages with WTO on trade-related matters.
• Conducts outreach programs to spread awareness of trade remedies.

Reasons for the Proposed 12% Steel Import Duty

• Global trade restrictions: The US imposed a 25% additional tariff on steel imports (effective March 12, 2025), revoking earlier exemptions.
  • 129 trade remedy measures have been adopted by the EU, Canada, the UK, and other countries.
  • This has led to excess steel being diverted to India, threatening domestic producers.
• Overcapacity in Steel-Producing Countries:
  • Japan, South Korea, and China produce steel far beyond their domestic consumption.
  • Excess production is likely to flood export markets, undermining Indian steel prices

Directorate General of Trade Remedies FAQs

Q1. What is the Directorate General of Trade Remedies (DGTR)?

Ans. The DGTR is an agency under the Ministry of Commerce and Industry, Government of India, responsible for investigating and recommending trade remedial measures like anti-dumping duties, countervailing duties, and safeguard measures to protect domestic industries from unfair trade practices.

Q2. How long does an anti-dumping duty remain in force?

Ans. Typically, anti-dumping duties last five years, but they can be reviewed and extended based on necessity.

Q3. Does DGTR handle trade disputes with other countries?

Ans. DGTR primarily deals with trade remedy investigations but works closely with the Ministry of Commerce and the WTO Dispute Settlement Mechanism for international trade disputes.

Q4. What is the role of DGTR in the WTO framework?

Ans. DGTR ensures that India’s trade remedial actions comply with WTO rules on anti-dumping, countervailing duties, and safeguards while protecting domestic industries.

Source: IE