India Strikes Back: Bold Retaliatory Measures Against EU’s Steel Tariffs Impacting Global Economy
India to Impose Retaliatory Measures on EU Steel Tariffs
India has notified the World Trade Organization (WTO) of its decision to impose retaliatory tariffs on products originating from the European Union (EU). This move comes in response to the EU’s steel tariffs, which were initially enacted in 2018 and extended until June 2026. India’s decision follows unsuccessful bilateral negotiations with the EU earlier this year.
India has not yet disclosed the specifics of the retaliatory measures but asserts that it will increase tariffs on select EU products. Over the past five years, these EU tariffs have affected approximately $4.4 billion worth of Indian exports, generating around $1.1 billion in import duties for the EU.
India seeks WTO approval to impose equivalent retaliatory duties, mirroring the financial impact experienced due to the EU’s tariffs. New Delhi emphasized its right to enforce these measures immediately and adjust the affected products and tariff rates accordingly.
The EU’s safeguard tariffs, implemented to protect its steel producers from global overcapacity and competition, initially covered 26 types of steel products and included a 25% additional tariff on imports exceeding the quota. Although these measures were supposed to expire in June 2021, they have been extended twice, most recently until June 2026.
India has consistently opposed the EU’s extended tariffs, arguing that a WTO dispute settlement panel has already deemed these measures inconsistent with WTO norms. Despite ongoing bilateral discussions, India has decided to take firm action to protect its trade interests.
Key Impact:
- $4.4 billion worth of Indian exports affected over five years.
- $1.1 billion in import duties collected by the EU from Indian exports.
- India plans to impose equivalent retaliatory duties on EU goods.
First Published: Sep 20, 2024 | 9:19 PM IST
Last Updated: Sep 21, 2024 | 12:35 AM IST
Original Story https://www.business-standard.com/economy/news/india-to-impose-retaliatory-measures-against-european-union-s-steel-tariffs-124092001287_1.html
Category :
Tags:
