India launches safeguard investigation on bare elastomeric filament yarn

On 5 March 2014, India notified the WTO’s Committee on Safeguards that it initiated on 28 February 2014 a safeguard investigation on bare elastomeric filament yarn.

The investigation was initiated following the examination of the safeguard petition of the domestic industry (DI) alleging serious injury and threat thereof caused by increased import of the Product under Consideration (PUC) into India. Relevant factors having significant bearing on the present deteriorating domestic industry, as claimed by DI, inter-alia, are:

• The import of subject product has shown an increasing trend in absolute terms as well as the relative terms;
• Capacity utilization of the domestic industry has declined in the most recent period;
• Share of domestic industry in domestic consumption and domestic demand has fallen significantly;
• Though sale of the domestic industry increased upto Q1 of 2013-14 as compared to the preceding year 2012-13, it has decreased significantly from Q1 of 2013-14 to Q3 of 2013-14;
• Profitability of the domestic industry has steeply deteriorated, leading to financial losses.

Accordingly, it has been found that prima facie increased imports of PUC have caused or threatening to cause serious injury to the domestic producers of PUC. Hence, Director General (Safeguards) has decided to initiate the investigation.