Purified Terephthalic Acid (PTA)

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.