Purified Terephthalic Acid (PTA)

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News: Finance Minister, in her budget speech has said that the government was abolishing an anti-dumping duty that was levied on imports of Purified Terephthalic Acid (PTA)

Facts:

About Purified Terephthalic Acid

  • It is a chemical used to make various products, including polyester fabrics. 
  • It makes up for around 70-80% of a polyester product like polyester staple fiber and spun yarn
  • The anti-dumping duty on PTA was imposed after two domestic manufacturers, approached the Directorate General of Trade Remedies (DGTR) in 2013.

Additional Information:

Anti-Dumping Duty: It is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value.

Directorate General of Trade Remedies:

  • It was established in 2018 and functions under the Ministry of commerce and industry.
  • It subsumed the Directorate General of Anti-dumping and Allied Duties, Directorate General of Safeguards and some functions of the Directorate General of Foreign Trade.

Functions:

  • Administer all trade remedial measures including anti-dumping, countervailing duties and safeguard measure.
  • Provide trade defense support to the domestic industry and to exporters in trade remedy investigations instituted by other countries.