India Proposes 5-Year Extension of Anti-Dumping Duties on Chinese EVA Backsheets: A Shield for Domestic Growth

India’s Directorate General of Trade Remedies (DGTR) has proposed a five-year extension of anti-dumping duties on Ethylene Vinyl Acetate (EVA) backsheets imported from China. Following a recent investigation, DGTR found that these EVA backsheets from China were being sold in India below normal prices, constituting dumping.

The recommended anti-dumping duty is $590 per metric ton for products from Changzhou Sveck Photovoltaic New Material Company and $897 per metric ton for other producers.

In 2019, India had imposed anti-dumping duties on EVA backsheets from China, Malaysia, Saudi Arabia, and Thailand, set to conclude in March 2024. The DGTR observed a 400% increase in India’s capacity to produce these goods since the imposition of duties. Despite this, evidence suggested significant unutilized capacities among Chinese exporters, hinting at a risk of oversupply in China’s EVA market.

After the imposition of anti-dumping duties, there has been a noteworthy emergence of new producers engaging in the manufacturing of the EVA backsheet within the country. This surge in domestic production has led to a remarkable increase of over 400% in India’s capacity to produce EVA backsheet, underscoring the positive impact of the anti-dumping measures. The extension of duties for an additional five years is deemed essential to maintain fair competition among domestic producers.

The prolonged imposition of these duties is seen as a crucial measure to sustain a level playing field for the domestic industry. By doing so, it ensures that the benefits gained from the surge in local production are preserved, fostering an environment where domestic producers can continue to thrive without the adverse effects of dumping practices. The argument emphasizes that the continuation of anti-dumping duties is not only instrumental in shielding the domestic market from unfair trade practices but also pivotal in providing stability and support to indigenous producers.