Enhanced imports of non-phthalate plasticizers from South Korea have caused serious injury to the domestic industry, a bilateral safeguard investigation conducted under the India-Korea Comprehensive Economic Partnership Agreement (CEPA) has concluded.
Conducted by the Directorate General of Trade Remedies (DGTR), the probe covered imports of Dioctyl Terephthalate (DOTP) and Diethylhexyl Cyclohexane (DEHCH) from the Republic of Korea.
These investigations were launched after an application filed by KLJ Plasticizers Limited under the India-Korea CEPA Bilateral Safeguard Measures Rules, 2017.
The final findings published by the Government last week say that imports from South Korea raised sharply during the investigation period both in absolute terms and relative to domestic production.
The Director General observed that the increase in imports was linked to tariff concessions available under the India-Korea trade agreement.
“Combined imports of DOTP and DEHCH from Korea rose significantly over the period under review," notes the probe.
DGTR said Korean exports to India increased at a faster pace than exports to other markets and that India’s share in Korean exports rose from 46 per cent in 2019-20 to 60 per cent in 2024-25.
Rejecting objections raised by interested parties, the Director General held that DOTP and DEHCH are directly competitive products as they are used in overlapping applications, purchased by the same set of consumers and can substitute each other in the market despite differences in technical characteristics.
The probe body also found that duty-free imports from Korea captured market share from domestic producers, exerted pressure on domestic prices and led to deterioration in profitability, cash profits and return on capital employed by the Indian industry.
DGTR stated that the domestic industry had suffered serious injury as a result of duty concessions granted to Korean imports, which led to increased imports from the Republic of Korea.
The findings were published in the matter — “Bilateral Safeguard Investigation Concerning Imports of Non-Phthalate Plasticizers in the Form of DOTP and DEHCH from the Republic of Korea under India-Korea CEPA.”
