Adopt WTO safeguards against cheap chemical imports: House panel

NEW DELHI: A parliamentary committee has recommended that the government should adopt WTO safeguard measures to protect the industry from dumping of cheap chemical products from countries like China.
"Dumping of cheap products from the countries like China is a major reason for the deteriorating performance of the indigenous chemical sector industry," a department-related parliamentary standing committee on industry said.
The committee which examined the MoU system in the chemical sector PSEs said "that anti-dumping mechanism be activated to ensure against cheap imports and the Government should take up the matter with the designated authorities in this regard".
Expressing concern that the government had not taken adequate steps to make the Indian industry globally competitive, the committee headed by PC Alexander said measures for establishing world scale capacities to achieve economies of scale should be taken.
In this context the committee said technology upgradation allowing duty-free import of catalyst, providing adequate infrastructure facility of international standards and reducing power and finance cost could be some remedies for making the chemical industry globally competitive.
Referring to the Hindustan Organic Chemicals, the committee said that necessary financial support should be given to the company so "that it becomes viable and may fetch good price in the event of its disinvestment".
Examining the performance of HOC within the MoU parameters, the committee said that weightage should be given to the role played by HOC in developing those chemical derivatives which are being imported at exorbitant prices.
It also suggested that the focus of the MoU should be shifted from financial parameters to more important factors of national interest.
"The MoU should accord higher weightage to performance parametres relating to R&D and Development of Import subsidies," it said.