India files complaint against US citing 'discrimination' over tariff rates

25/05/2018 03:41 - 460 Views

India has filed a complaint to the World Trade Organization (WTO) against the United States move to impose tariffs on steel and aluminium citing inconsistency and discrimination in global trade.

India has lodged a complaint with the World Trade Organization (WTO) against the US stating that the imposition of tariff on steel and aluminium is inconsistency and discriminatory.

New Delhi listed multiple violations of WTO norms such as discrimination against imports, introduction of restrictions in the form of quotas and using tariffs to get other countries to agree to "voluntary export restraints" in the complaint, Economic Times reported.

On March 23, US President Donald Trump imposed an additional 25 percent import tariff on steel and 10 percent on aluminium products respectively for all countries except Canada, Mexico, Australia, Argentina, South Korea, Brazil and the European Union.

India said that the US tariff imposition was inconsistent with provisions of the WTO's General Agreement on Tariffs and Trade (GATT) 1994. The move is also not in line with the Agreement on Safeguards.

Following the complaint, WTO would give both parties an opportunity to discuss the matter and find a solution without proceeding further with litigation. If the WTO consultations fail to resolve the dispute withing 60 days, the complainant can request adjudication by a panel.

According to a report published by Care Ratings, in terms of value, imports from the US into India stand at around 50 percent of the exports from India to the US. The trade surplus stood at around $20 billion in 2017-18.

The direct impact of the move is limited for India as most products exported to the US attract anti-dumping duties. Aluminum and steel together account for around 3 percent of India’s exports to the US and in 2017, India exported less than one million tonne of alloy, primarily pipes, tubes, and wire rods, to the US.

However, the industry and the government fear a long-term impact of the executive order.

According to another government official, steps taken by the US can create glut in export-oriented nations like China, Russia, and South American nations that could be diverted towards India.
Source: Money Control News
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