Bangladesh Urges India to Reconsider Imposing Countervailing Duty on Jute Goods
The commerce ministry of Bangladesh has sent a letter to the Indian Directorate General of Trade Remedies, urging them to reconsider imposing countervailing duty on raw jute and jute goods. In a consultation meeting held in October, both countries presented their arguments regarding the proposed Indian countervailing duty. Bangladesh has concluded that there is no evidence to initiate an investigation based on the petition filed by the Indian Jute Mills Association. Find out more about the ongoing dispute and the efforts made by Bangladesh to resolve the issue.
Bangladesh’s Stance on Imposing Countervailing Duty
Learn about Bangladesh’s position on the proposed countervailing duty on jute goods.
Bangladesh’s commerce ministry has firmly stated its opposition to the imposition of countervailing duty on raw jute and jute goods by India. In a letter sent to the Indian Directorate General of Trade Remedies, Bangladesh has emphasized that there is no evidence to initiate an investigation based on the petition filed by the Indian Jute Mills Association.
Despite the allegations made by the Indian jute mill owners’ association regarding subsidies provided by Bangladesh for the import of capital machinery used by local jute industries, Bangladesh has highlighted that the subsidy program outlined in the petition is non-actionable in nature. Furthermore, there are no jute industries located in Special Economic Zones or Export Processing Zones, as stated in a commerce ministry document.
Bangladesh has requested the Indian trade remedy directorate to refrain from initiating any investigation into the imposition of countervailing duty. The country firmly believes that there is no provision in the World Trade Organization or the existing Indian law to impose anti-dumping and anti-subsidy duties simultaneously on the same product.
India’s Investigation into Bangladeshi Jute Goods Imports
Explore the reasons behind India’s investigation into jute goods imports from Bangladesh.
India initiated an investigation into Bangladeshi jute goods imports following a complaint petition by Indian jute mill owners. The Indian jute mill owners’ association alleged that Bangladesh was providing significant subsidies for the import of capital machinery used by local jute industries.
It is important to note that jute goods exported from Bangladesh have already been facing significant anti-dumping duty since 2017. The imposition of countervailing duty on top of the existing anti-dumping duty has raised concerns for Bangladesh, as it could have a detrimental impact on the country’s export earnings from India.
Bangladesh is currently pursuing diplomatic and political channels to persuade India against imposing countervailing duty. The country is highlighting the negative consequences of the existing anti-dumping duty and emphasizing the need for a fair and balanced trade relationship between the two nations.
The Dispute Resolution Efforts by Bangladesh
Discover the diplomatic and political efforts made by Bangladesh to resolve the countervailing duty dispute.
Recognizing the potential negative impact of the countervailing duty on its export earnings, Bangladesh has been actively engaging with India to find a resolution. The country has been using diplomatic and political channels to convey its concerns and urge India to reconsider the imposition of countervailing duty.
Bangladesh has emphasized the importance of maintaining a fair and balanced trade relationship between the two countries. It has highlighted the lack of legal support under Indian law for the imposition of countervailing duty on jute products. Additionally, Bangladesh has pointed out that there is no provision to impose anti-dumping and anti-subsidy duties simultaneously on the same product, as per the World Trade Organization rules.
By presenting its arguments and requesting a reconsideration of the proposed countervailing duty, Bangladesh aims to protect its jute industry and ensure a mutually beneficial trade relationship with India.