India has taken its dissatisfaction with the United States over the imposition of import duties on steel and aluminium to the next level by dragging the world’s biggest economy to the World Trade Organizarion’s dispute resolution platform.
India has stated that the decision will impact exports of these products to the US and it is not in compliance with global trade norms.
“India has filed a dispute under the aegis of the WTO on the issue of imposing import duties by the US on certain steel and aluminium products,” an official said.
The country has sought consultations with the US under the WTOs dispute settlement mechanism.
This, however, is not a retaliatory move against the US filing a dispute against India on export, alleging these support measures harm its workers by creating an uneven playing field.
Earlier on, in March, US President Donald Trump had already imposed heavy tariffs on imported steel and aluminium items, a move that has sparked fears of a global trade war.
Trump signed two proclamations that levied a 25 per cent tariff on steel and a 10 per cent tariff on aluminium imported from all countries except Canada and Mexico.
India too had then sought exemptions from the hefty tariffs.
Industry analysts believe that the US decision would not only impact India’s export of these goods but would also impact global trade. India’s exports of steel and aluminium products to America have been at about $1.5 billion every year.
Some experts also opine that dragging the US in the dispute over the issue is not in favour of India, as New Delhi has a trade surplus with America.
Both countries are already involved in other disputes at the global trade body, including in areas such as poultry and solar power.