Argentina has launched an anti-dumping investigation into synthetic fabrics originating in China.

The product involved is synthetic fiber warp knitted fabric (raschel), with an elastic yarn content greater than or equal to five per cent (excluding rubber thread), width less than or equal to 30 cms, non-straight side bands on one or both sides, synthetic fiber material, elastic yarn content greater than or equal to five per cent (excluding rubber thread).The main export provinces and cities of the goods involved are mainly Zhejiang, Guangdong and Shanghai.

Dumping is an unfair trade practice, because the lower export prices are not a result of efficiency on the part of the exporting producers, but of distorted market conditions illustrated by the segregation of the domestic market. Dumping limits effective competition and creates uncertainty, which hinders a predictable investment climate. If it is established that dumping has caused material injury to domestic players, an anti- dumping duty may be imposed. Dumping affects gross margins.Anti-dumping duties are levied to provide a level playing field to local industry by guarding against cheap, below-cost imports.

Growing imports and dumping of goods from China have always been an area of concern for Indian companies too.