Circular Economy Impacts and Trade Remedy Measures: ESG BROADCAST shares key takeaways.
The Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce and Industry, has released its preliminary findings regarding the anti-dumping investigation into Polyethylene Terephthalate Film (PET Film) imported from China, Bangladesh, and Thailand. Published in the Gazette of India on March 21, 2026, the notification addresses Case No. AD(OI)-48/2025. This investigation examines the adverse impacts of low-priced imports on the domestic industry, which serves as a critical supplier for sustainable packaging and high-tech industrial applications. The authority has found sufficient evidence of dumping, suggesting that these imports are entering the Indian market at prices below their normal value.
The investigation period spans from April 2024 to March 2025, covering a wide range of PET Film types used in electrical insulation, flexible packaging, and magnetic media. PET Film is a vital component in the transition toward a circular economy, as its recyclability and barrier properties help reduce material waste in global supply chains. However, the DGTR noted that the domestic industry has suffered material injury characterized by price suppression and a decline in profitability. By implementing trade remedy measures, the government aims to level the playing field for local manufacturers who are increasingly investing in green manufacturing technologies and energy-efficient production lines.
The preliminary findings recommend the imposition of provisional anti-dumping duties on the subject goods to neutralize the margin of dumping. These duties are calculated based on the difference between the landed value of the imports and the non-injurious price determined for the domestic industry. Interested parties, including exporters from the subject countries and domestic industrial users, have been invited to submit their comments within 15 days of the notification. The DGTR will subsequently conduct oral hearings and further verifications before issuing its final findings, ensuring a transparent and data-driven process for all stakeholders involved in the trade dispute.
The applicability of these findings is significant for the broader ESG landscape, as trade protectionism in the chemical and polymer sectors often influences the cost of sustainable materials. While anti-dumping duties support the economic viability of domestic producers, they also necessitate a strategic review of supply chain resilience for downstream users. The DGTR has emphasized that these measures are intended to prevent unfair trade practices rather than restrict legitimate competition. Domestic producers are now under pressure to demonstrate that protected markets lead to improved environmental performance and the scaling of specialized, high-performance films required for renewable energy components.
Strategic significance lies in the reinforcement of domestic industrial capacity as a pillar of national economic security. For businesses, the imposition of these duties will likely lead to a recalibration of sourcing strategies and a focus on domestic procurement. Compliance with these trade regulations is essential for importers to avoid unexpected cost escalations at the border. Ultimately, ensuring the health of the domestic PET Film industry supports India’s long-term goals of self-reliance and the integration of advanced, recyclable materials into the national manufacturing ecosystem.
Image Credit: Outlook Business
