India Proposes $1.1 Billion Retaliatory Duties in Response to EU Steel Curbs
Policy Developments Amidst EU Steel Curbs
New Delhi: India could impose additional tariffs worth $1.1 billion on some products originating from the European Union in retaliation against the bloc’s extended safeguard duties on its steel imports. An official indicated, “We are working on the products that would be subject to higher tariffs. These will mostly be steel products.”
WTO Notification and Trade Impact
The two sides failed to reach an agreement on the concessions that the EU can offer India to mitigate the adverse impact of the safeguard duties it levies on some steel imports. This situation escalated when New Delhi informed the World Trade Organization (WTO) about its intent.
- The safeguard measures imposed by the EU have resulted in a $4.4 billion trade loss for India between 2018-23.
- These measures consist of tariff-rate quotas imposed on 26 steel product categories with an out-of-quota duty of 25%.
Context of Retaliation
India’s iron and steel and their products exports to the EU increased to $6.64 billion in FY24 from $6.1 billion in FY23. However, India, along with China and Russia, criticized the EU’s extended levy on certain steel products, arguing it was inconsistent with global trade rules set by the WTO. Previous actions included a proposal by India to impose import duties of €292 million on select products from the EU in 2021.
- The ongoing discussions highlight the complexity of international trade dynamics.
- The $1.1 billion retaliatory duties reflect India’s proactive stance in protecting its domestic industries.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.