India now has the option to propose imposition of retaliatory customs duties under the WTO norms on certain value of goods imported from the EU. The Ministry of Commerce & Industry and the Ministry of Steel are deliberating on the quantum of impact
Jul 1, 2024
India and the European Union (EU) have failed to reach a consensus over the safeguard duties imposed by the bloc on certain steel imports from New Delhi.
In June 2024, the European Commission officially extended the steel safeguard measures for two more years till June 2026. This is the second extension of the safeguards that take the form of the Tariff Rate Quota (TRQ), first imposed in 2018.
An Indian government official said that the country has substantial interest as an exporter of the products concerned. India submitted its concerns to the EU regarding the manner in which safeguard measures have been extended, violating the global trade provisions and the WTO’s Agreement on Safeguards, he added.
Calling the EU’s measure as inconsistent with global trade rules, the official said India now has the option to propose imposition of retaliatory customs duties under the WTO norms on certain value of goods imported from the EU. The Ministry of Commerce & Industry and the Ministry of Steel were deliberating on the quantum of impact, he added.
Earlier, New Delhi and other countries had raised concerns at the World Trade Organisation (WTO) over the EU’s decision to extend safeguard duty on the import of certain steel products till 2026.
As per the WTO rules, if no agreement was reached on compensation within 30 days of the consultations, India reserves its right to suspend concessions or other obligations substantially equivalent to the adverse effects of the measures under the WTO’s Agreement on Safeguards on the EU’s trade, and any other right available under GATT 1994 and Agreement on Safeguards.
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In July 2018, the EU imposed certain definitive safeguard duties to protect its industry against a surge of imports.
