India opposed to American calculation of dumping margin

“We are opposed to the process and will always oppose it,” commerce and industry minister Kamal Nath said on the sidelines of the CENTAD conference here. India has communicated its opposition to the WTO. “We have come out with a note expressing our opposition,” he said.

Zeroing inflates the dumping margin, which in turn increases the anti-dumping duties on products. Under the process, the importing country calculates the average dumping margin by considering similar products, but ignoring the negative dumping margin that is considered as zero.

On several occasions, another WTO authority has refused the demand by the US and the European Union to calculate the anti-dumping duties using the process of Zeroing.

However, the recent circular could lead to legitimising this process and create protectionism.