India mulls import duty on Chinese aluminium

03 March 2009

Indian trade secretary Gopal K Pillai said that the government is planning to impose a duty on Chinese imports of aluminium in order to safeguard India's aluminum industry. The Indian government is also probing shipments of other goods from China.

''A lot of items have come. We are already in discussion with the Chinese to tell them 'look, we don't mind your exporting to India… but you can't export to an extent, which can kill my domestic industry','' Pillai said on the sidelines of a conference''.

''China is a non-market economy. They have created huge capacities in their country… Where are they going to sell their products? They are going to dump it in India,'' he said.

Earlier this month, China's commerce ministry said India had started 17 trade remedy investigations on Chinese made products since October 2008. Related products include linen fabric, tires and hot rolled steel, which are valued at $1.5 billion. It has also restricted the import of steel, chemical products and textile products from China recently (See: China concerned over Indian trade probes on its exports) China had cautioned New Delhi that such moves would have a serious impact on bilateral economic and trade ties.

Pillai said the safeguard duty on aluminium from China would be imposed in one or two weeks.

"We have already investigated. Safeguard duty will be imposed," he said.