Why is it in the news?

• In a move on June 14, the European Commission’s Directorate General for Trade issued provisional anti-dumping duties on Indian optical fiber cable manufacturers following an investigation that started in November 2023.
• Europacable, representing the industry union of optical fiber cable manufacturers, reported dumping practices from India to the detriment of the European industry.

More about the news

• Optical fiber cables play a crucial role in telecommunications and broadband coverage.
• Europacable observed a significant increase in imports of single-mode optical fiber cables from India, leading to adverse effects on the European industry in terms of sales, pricing, and market share.
• The allegations were based on comparisons between domestic and export prices, indicating significant dumping margins for Indian products. Consequently, the European Commission initiated a proceeding in November 2023 to investigate these claims further.
• The European Commission provisionally levied anti-dumping duties ranging from 8.7% to 11.4% on different Indian cable manufacturers.
• Various companies face different duty rates, with HFCL being the only manufacturer exempt from these measures based on their product quality and relationships with European telecom operators.
• In a previous instance, the European Commission imposed anti-dumping duties on Chinese manufacturers in 2021 following similar complaints from Europacable. This action resulted from observations of unfair competition practices and government subsidies benefiting Chinese producers.

Implications

• Data shows that China was the largest importer of optical fiber cables to the EU, followed by India. The imposed duties could impact European consumers as they seek alternative suppliers.
• The declining exports of optical fiber cables from India underscore the challenges the domestic industry faces, including inventory pile-ups and reduced market share due to dumping practices.