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20
November 2018
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| Import Duties (The Total Investment & Insurance Solutions) |
Taking forward trade dispute with America in
the World Trade Organization (WTO), India has asked the Geneva-based
multilateral body to set up a panel against the US for imposing high import
duties on certain steeland aluminium products, an official said. India took
this decision after both the countries failed to resolve the issue in a
bilateral consultation process under the dispute settlement mechanism of the
WTO.
Consultation is the first step of the dispute
settlement process in the organisation. If the two countries are not able to
reach a mutually agreed solution through consultation, a country can request
for a WTO dispute settlement panel to review the matter. "So, now, India
has asked the WTO for establishment of the dispute panel on the matter," the
official said.
Imposition of high import duties on these
items by the US has impacted exports of these products by Indian businesses.
The US move is also not in compliance with global trade norms. Besides India,
Russia, Norway, Canada, Mexico, Switzerland, and European Union have dragged
the US in the WTO on America's move to impose 25 per cent and 10 per cent
import duties on certain steel and aluminium products, respectively, which has
triggered global trade tensions.
"We have discussed the matter with all
these countries. A common dispute panel could be formed on the matter,"
the official added. India has a significant export interest to the US on the
steel and aluminium sector. As per estimates, India exports steel and aluminium
goods worth about USD 1.6 billion a year to America. The US had imposed these
duties on grounds of national security.
Biswajit Dhar, professor of economics at
Jawaharlal Nehru University, said the US decision would not only impact India's
export of these goods but would also affect global trade. "The entire
basis of the US action is based on its own perception of security threat issue.
This cannot 11/20/2018 India asks WTO to set up panel against US for imposing
high import duty on steel, aluminium be a ground to impose these duties,"
Dhar said
Some experts, however, said 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. India's exports to the US in 2017-18 stood at about
USD 48 billion, while imports were USD 26.7 billion. Both the countries are
also involved in several other disputes in the WTO. Those disputes are in the
areas of poultry, export incentives, solar and steel. In retaliation to the
imposition of duties by the US, India has decided to increase customs duty on
29 American products such as almond, walnut, pulses and iron and steel items.
The duties would come into effect from December 17.The Total Investment & Insurance Solutions
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