WTO Panel rejects India’s claims on Steel issues with the US
The World Trade Organization panel on November 15, 2019, rejected several claims of India against US on steel duties. India earlier complained to the organization that the United States is breaching international trade rules in 14 areas. Following which, WTO had faulted US decision over imposition of countervailing duties on steel products from India. However, US failed to stick to the norms demanding more access to Indian markets.
Background of the issue
In 2012, India filed the first complaint against US at the WTO. The complaint was that Washington is imposing tariffs on nearly 300% imports that included steel, carbon-quality steel, etc. Later in 2014, the global body ruled that the duties imposed by the US were a breach of global trade rules. When US failed to comply the ruling, India took it to the WTO again.
WTO set a Dispute Settlement Body to sort out the issue. The Body has now rejected several charges filed by India against US duties
Effect on Trade
Because of the duty imposed by the US, India’s steel export to the US declined by 49% in 2018. The export of steel from India that was 372 million USD in 2012 declined to 221 million USD.
Category: International Current Affairs