China to Address Anti-dumping Duties on Indian Antibiotics

The Chinese Government is going to review anti-dumping measures on sulfamethoxazole (SMZ), an antibiotic imported in huge quantities from India, raising possibility of extending duties that are due to phase out June 2012.

Way back in 2007, cheaper Indian exports of SMZ caused a dent in profits of local Chinese pharmaceutical players and imposed anti dumping duty of 10.1 % to 37.7%. Recently in June 2011, Shouguang Fukang pharmaceutical firm filed an application an adjustment of tariff rates as Indian SMZ producers increased their dumping efforts in China.

In recent months, Indian pharmaceutical companies have asked the Chinese Government to open up the booming domestic healthcare market, which is witness to multi-billion dollar reform and to unwind the registration procedures which have kept Indian players at bay. In March 2011, a 15-member delegation of the Indian Drug Manufacturers Association (IDMA) held talks with officials of China's State Food and Drug Administration (SFDA) to raise concerns over registration rules and other technical details.

China exports over $3 billion worth of pharmaceuticals, largely Active Pharmaceutical Ingredients (APIs) to India each year while India exports around $500 million to the country annually.

Indian government is making endeavours to reduce a fast-growing trade imbalance which rose to a record $20 billion in 2010. Bilateral trade between both countries reached $61.7 billion in 2010, with China becoming India's largest trade partner.

The trade deficit has, widened so far this year, touching a record $14 billion in seven months.