With an aim to protect the domestic players, the Government of India has started a probe into alleged exports subsidization on a particular kind of rubber by South Korea, which is impacting the domestic industry.
The Directorate General of Trade Remedies (DGTR) which ensures a level playing field to the Domestic Industry against the adverse impact of the unfair trade practices, has initiated an investigation following complaints by domestic firms. Indian Synthetic Rubber and Reliance Industries have filed an application before the directorate alleging subsidization of this rubber from Korea.
In the probe, DGTR would determine whether the subsidy programs of South Korea for exports of 'Styrene Butadiene Rubber' is impacting the domestic industry. The directorate will determine the existence, degree, and effect of alleged subsidization.
If it will be established that subsidies by Korea are impacting the domestic industry, the DGTR would recommend the amount of countervailing duty, which if levied, would be adequate to remove the injury to the domestic industry. The period of investigation is from April 2018 to March 2019 (12 months). However, the investigation will cover the data of 2015-18.