India’s imports
India has proposed to impose retaliatory customs duty under WTO norms on certain goods imported from the European Union. India has taken this step after there was no consensus on the EU’s safeguard measures on steel products. In a message sent to the World Trade Organization, the Indian government said that it would suspend concessions and increase customs duty on selected products produced in the European Union. The Indian government said, “India has suffered a total trade loss of $ 4.41 billion due to the EU’s safeguard measures from the year 2018 to 2023, on which duty collection will be $ 1.10 billion. Accordingly, if India suspends concessions, duty of the same amount will be collected on goods produced in the European Union.”
European Union extends safeguard duty till 2026
According to this communication, India also reserves the right to make the proposed suspension effective immediately and adjust customs duty rates on the products in order to effectively exercise its right to suspend substantially equivalent concessions. India will inform both the Council for Trade in Goods and the Safeguards Committee about the next appropriate steps. This development assumes significance as the European Union has extended safeguard duty on imports of certain steel product categories along with a quota-free duty of 25 per cent till 2026. It was first imposed in the year 2018 which was later extended till June 2024. The European Union notified the WTO about its proposal to extend safeguard measures on imports of certain steel products on May 29, 2024. India is one of the countries affected by this measure.
India’s exports increased
India’s exports of iron and steel and their products to the European Union increased to $ 6.64 billion in the financial year 2023-24 from $ 6.1 billion in 2022-23. India, along with other countries, has raised concerns in the WTO over the European Union’s (EU) move to extend safeguard duty on imports of certain steel products till 2026. Clarifying the issue, an official said that India has sufficient interest as an exporter of the relevant products and the EU’s move is not in line with global trade rules. India and EU officials had earlier held bilateral consultations on the issue, but the two sides have not been able to reach a consensus on the matter.
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