India has initiated a probe into an alleged increase in imports of a chemical, which is used to make dyes and insecticides, from South Korea following complaints by domestic firms.

According to a notification issued by the Directorate General of Trade Remedies (DGTR), IG Petrochemicals and Thirumalai Chemicals have alleged that increase in imports of Phthalic Anhydride from South Korea is causing serious injury to them.

India has a free-trade agreement with South Korea.The DGTR has said that after determining that there are prima facie evidence to justify initiation of the safeguard investigation, “the Director General considers appropriate to initiate the investigation”

In the probe, it would determine whether the imports of the chemical from Korea constitute increased imports and whether that have caused or is threatening to cause serious injury to the domestic industry.The two companies that have filed the application account for a major share of the total production in the country.

In the probe, if it was established that the increase in imports have impacted domestic players, the directorate would recommend imposition of safeguard duty on the imports.The finance ministry will take the final call to impose the duty.

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