CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council
(Set-up by Ministry of Commerce and Industry, Govt of India)
Jhansi Castle, 4th floor, 7-Cooperage Road,   Mumbai - 400 001.

Tel  :+91-22-69821200 to 206 Fax No : 22-69821226 / 37
Twitter : @chemexcil
E-mail: info@chemexcil.in
Website: http://www.chemexcil.in

EPC:LIC:AS:2024-25:1234/CP/1236                                            26th December, 2024

TO,

ALL THE MEMBERS OF THE COUNCIL

Dear Members, 

This is regarding the Zimbabwe WTO Notification dated 19th December (attached herewith) concerning the initiation of Safeguard Investigation on Toothpaste Imports.

The main Countries Exporting toothpaste to Zimbabwe are India, China and South Africa.

Reasons for Initiation of Investigation:-

·         substantial increase in toothpaste imports from 2020 to 2023

·         Production, capacity utilization, sales, market share, and profits & losses of domestic Industry have significantly deteriorated

·         Rise in imports is result of Unforeseen development stemming from Covid-19 recovery policies in exporting countries increased production and cost-effective manufacturing thereby creating surpluses

·         Zimbabwe's population growth and economic recovery policies boosted demand and increased imports.

·         Reopening of trade post COVID Restrictions caused a surge in imports thereby harming the Zimbabewan local industry.

·         Overall Imports rose 124% between 2021 and 2023, reaching 2.74 million kg in 2023, marking the highest level on record and posing a serious threat to the viability of the local industry.

·         Over past 4 years, domestic industry could utilize only 5% of its installed capacity and hence, Imports outpaced domestic production.

·         Imported toothpaste is priced lower than domestic products

·         Other factors such as exchange rate fluctuations and power challenges, may have contributed to the difficulties faced by the domestic industry

In view of the above, interested members are requested to go through this notification and submit their comments by email to amrita@chemexcil.in by 10th January 2024 for onward submission.

Thanks and regards,

Raghuveer Kini 

Director General 

CHEMEXCIL

Encl :- WTO Notification