Egypt imposes dumping duty on Indian tyres
11 Mar 2008
Mumbai: Egyptian authorities have proposed to levy a dumping duty on new bus and truck tyres of Indian and Chinese origin for the next five years, the state news agency MENA said.
The dumping duty is aimed at encouraging investment in Egyptian production of tyres of this type and to create new jobs in the sector, trade and industry minister Rachid Mohamed Rachid said.
He did not say how much the duty would be. But said a joint Egyptian-Chinese industrial area west of Cairo would start producing all kinds of components for the vehicle industry within 12 to 18 months.
Egypt's government is the latest to introduce a duty to deter the dumping of cheap tyres into its market.
The move comes amidst increasing concern amongst tyre industry over increasing rubber experts and a 3 per cent drop in domestic natural rubber production.
Natural rubber exports from India almost doubled in January to 7,522 tonnes, compared with 3,886 tonnes in December 2007, on the back of lower domestic prices.
Currently the price for India-sourced rubber is lower than prevailing world prices, and experts believe that if current global prices continue their upward journey a total of more than 40,000 tonnes of rubber may be exported from India during the current financial year.
India's tyre industry consumes 55 per cent of local natural rubber supplies, and difficulties already exist in meeting domestic demand.