NASSCOM advocates AI for effective anti-dumping duty issues and FTA planning

In the realm of international trade, the contentious issue of dumping has consistently posed challenges for governments worldwide. To address this challenge, the National Association of Software and Services Companies (NASSCOM) has proposed a groundbreaking solution, i.e.,the deployment of Artificial Intelligence (AI) tools by the Indian government.

This suggestion comes as a ray of hope in streamlining trade practices and ensuring a level playing field. Let's delve into how AI could revolutionise the trade landscape.

AI revolutionising trade oversight

NASSCOM has put forth a novel idea, advocating for the government's use of AI to scrutinise and analyse the vast volumes of export-import data. The goal? To swiftly identify instances of dumping, a practice where goods are sold in foreign markets at prices lower than their home market prices.

The suggestion has been formally presented to the Union Commerce and Industry Ministry, marking a significant step toward embracing futuristic technologies in official work and data analysis.

AI in free trade agreement (FTA) negotiations

Beyond its role in curbing dumping, AI could also play a pivotal role in negotiations for free trade agreements between India and other nations. The ability of AI to capture trends and provide data-driven insights during these negotiations could enhance India's position and decision-making.

This forward-thinking approach aligns with the government's eagerness to leverage advanced technologies for data analysis and trend identification.

Drawing inspiration from international models

India need not reinvent the wheel when it comes to AI adoption in trade. International organisations like the International Chamber of Commerce Brazil and UNCTAD have already embraced AI. The former employs AI in trade negotiations, utilising a tool called ‘Cognitive Trade Advisor’ to aid negotiators in preparing for talks.

This AI-powered application understands natural language and offers valuable solutions. Moreover, the Indian government can tap into AI tools to identify dumping cases from various countries efficiently. AI can swiftly navigate through vast import data, making the identification process quicker and more accurate.

In instances where exporters attempt to evade anti-dumping duties, AI can serve as a powerful ally in detecting such cases. By analysing time-series data, the government can pinpoint the countries where these goods originate and are exported from.

Building a central database for future reference

To bolster these efforts, NASSCOM suggests creating a central database or repository to store information on interventions, such as the nature of patents held by companies or nations and the duration of patent rights. This resource would be invaluable for quick reference in future trade dealings, allowing importers to make informed decisions based on patent-related information.

In short, the proposal to integrate AI into trade oversight and negotiations is a bold step forward for India's trade landscape. With AI's capabilities in data analysis, trend prediction, and detecting unfair trade practices, it holds the potential to transform how the nation engages in international trade and safeguard its economic interests. This forward-looking approach aligns with India's vision for a tech-driven future in trade and commerce.