India begins anti-subsidy investigation against Malaysia’s aluminium primary foundry alloy ingots exports

According to a recent report, India has started probing into alleged subsidised aluminium products exports by Malaysia, following a complaint by the domestic industry. The news came after the Directorate General of Trade Remedies (DGTR) began an anti-subsidy investigation to examine if Malaysia’s subsidised aluminium primary foundry alloy ingots exports were affecting the domestic industry.

At first, Vedanta Limited and Bharat Aluminium Company Limited (BALCO) filed an application urging the initiation of a probe into subsidised imports of aluminium products originating in or from Malaysia.

Aluminium primary foundry alloy ingots are primarily used for automobile and steel applications.

Both Vedanta and BALCO requested the imposition of countervailing duties on imports alleging subsidised foundry primary aluminium alloy ingots imports from Malaysia were causing material injury to the domestic industry, said DGTR in a statement.

"On the basis of the duly substantiated written application by domestic industry, and having satisfied itself, on the basis of the prima facie evidence, substantiating subsidisation of the subject goods" exported from Malaysia, "the authority hereby initiates an investigation," DGTR said.

The directorate will examine the existence, degree, and effect of alleged subsidisation. If established that subsidies are impacting the domestic industry, DGTR will recommend an adequate countervailing duty to compensate for the injury caused.

The period of investigation is from April 2019 to September 2020 (18 months). However, the investigation will cover the data of 2016-19.