Castings from China: First Anti-Subsidy Final Finding

By Hansa Sinha

India finally has its first case under the subsidies and countervailing agreement. On 27th November, 2015 the Designated Authority issued the Final Findings in the matter of Castings for Wind Operated Electricity Generators from China. The petition for this case was filed by M/s Larsen and Toubro Limited whose production according to the finding constitutes more than 50% of the Indian production. Like many anti dumping cases, the domestic industry is not alone and supported by another producer i.e M/s Patel Allos Steel Pvt Ltd. Instead of solely imports, various schemes of the Chinese government have been highlighted and discussed in the finding. These are under major heads of grants, preferential loans, Goods and services provided by Government at less than fair market value etc. This investigation has inspired interest from various quarters. When normally there is no response from Chinese companies in Anti Dumping investigations, a response from Zhejiang Jiali Wind Power Technology Company Limited (Jiali) shows that China has sat up and taken note. It can also point towards it being slightly alarmed. Who wouldn’t be?  It is very comparable to Kumbhakarna waking up after sleeping for six long months. However, we can’t be too elated as the finding points out that the Government of China did not permit the Authority to visit China to conduct on the spot verification of the sole Chinese respondent producer/exporter. Such on the spot verifications have been a norm in the past Anti dumping investigations. Is there more? Than what meets the eye? Are there any skeletons in the Chinese closet? If I draw any conclusion, then that would be a hasty and irresponsible comment.

It might be a big victory for the petitioners, but it is a bigger victory for the Indian Anti Subsidy investigations. The rules with regard to anti subsidy investigations have existed almost along side the Anti Dumping Rules. The Authority for both is also the same i.e the Designated Authority at DGAD. However, despite existence of a competent format there were no investigations until now. Even if a couple of investigations were initiated they never saw the light of day and fizzled out. While anti dumping investigations have flourished in India, so much so that India is today considered to be a leading user of this trade remedy instrument. The Safeguard investigations also caught up with the setting up of DG Safeguards at Bhai Veer Sadan Marg. We are only glad that the tortoise has finally arrived at the finishing line.

The finding that runs into 189 pages, is longest one till date. I haven’t read the whole piece thoroughly yet, but you can try here.

Thank you for reading !

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