1: Introduction to the Investigation

- In recent events, India has taken the initiative to launch an anti-dumping investigation against the import of insoluble sulphur, mainly used in the rubber industry, from China and Japan.

- This investigation has been initiated by the Directorate General of Trade Remedies (DGTR), a government organisation that primarily deals with enhancing trade relations and resolving trade disputes.

2: Understanding "Dumping" and its Impact

- Dumping involves exporting goods to a foreign country at a price lower than the price it is sold at in the home market.

- This practice can cause damage to local industries as it undercuts their prices and introduces unfair competition.

3: Anti-Dumping Measures and their Importance

- Anti-dumping strategies include imposing duties or taxes on imports to compensate for the price difference between the export price and its normal value. This is to prevent any potential harm to producers of competitive products in the importing country.

- The World Trade Organization (WTO) regulations include these anti-dumping measures to ensure a level playing field for domestic producers against foreign competitors.

4: The Current Scenario

- The present anti-dumping probe is centred on imports of 'insoluble sulphur' from China and Japan.

- Insoluble sulphur is an amorphous form of sulphur that does not dissolve in carbon disulphide and plays a vital role in the rubber industry.

- This special chemical serves as an important additive in rubber products like tyres and shoes to enhance their quality. It is also a vulcanization accelerator, facilitating the hardening of rubber through cross-linking of molecules with other substances.

5: Anti-dumping in the Global Context

- Anti-dumping is a protective measure adopted by governments to shield domestic industries against foreign imports sold cheaper than home market prices.

- The WTO permits the exercise of anti-dumping measures to counter trade distortions caused by unfair dumping.

- Through this, the investigation will help ensure the establishment of competitive, balanced, and protected domestic industries in India.

6: GK Insights

- This event informs about significant matters affecting international commerce and local industries.

- It sheds light on the role of organisations like DGTR and WTO in handling trade disputes and promoting fair trade practices.

- It demonstrates how domestic industries like the rubber industry can be protected through government initiatives.