Why the European Commission imposed provisional anti-dumping duties on Indian optical fiber cable makers: Explained Premium

European Commission imposes anti-dumping duty on Indian optical fibre cable manufacturers, impacting European industry and consumers.

The story so far: In a provisional ruling on June 14, the European Commission’s Directorate General for Trade imposed anti-dumping duty on Indian optical fibre cable manufacturers. The actions were taken following an investigation which commenced in November 2023. A month before, the industry-representative body Europacable had complained about dumping from India causing injury to the European industry.

Optical fibre cables are a pivotal commodity for facilitating telecommunications and broadband coverage. 

Representing the industry union of optical fibre cable (manufacturers), Europacable in October 2023 observed that imports of single-mode optical fibre (SMOF) cables from India had increased both in absolute terms and market share. These lower-priced imports, the complainant said, had a negative impact on the quantities sold, the level of prices charged and on the market-share held by European manufacturers. Europacable said that the situation resulted in “substantial adverse effects on the overall performance and the financial situation” of the industry. 

The allegations were based on a comparison of the domestic prices with the export prices (ex-factory pricing) of the products when sold for export to the Union. The complainant said that the dumping margins calculated on this basis are “significant for the country concerned (India).”  

Thereafter, in November the same year, the Commission found “sufficient evidence to justify the initiation of a proceeding.” The investigation scrutinised the allegations about dumping and injury between October 1, 2022, to September 30 the next year. 

Anti-dumping duties have been provisionally levied in the range of 8.7% of 11.4% on Indian cable manufacturers. Birla Cable, Universal Cable and Vindhya Telelinks will face an anti-dumping duty of 8.7%. Polycab India, ZTT India, Aberdare Technologies, Apar Industries, UM Cables and Aksh Optifibre would be encountering an anti-dumping duty of 9.9%. Sterlite Technologies and Sterlite Tech Cables Solutions face a duty of 11.4%. 

However, these are provisional measures, and companies have access to legal recourse.