Safeguard Duty: Protecting Indian Steel Companies from Steel Imports
Safeguard Duty: Addressing Steel Imports
India's proposed safeguard duty aims to fortify Indian steel companies against the rising threat of cheap imports and steel dumping. The Directorate General of Safeguards is pivotal in this initiative as it assesses the impacts of free trade agreements (FTA) that contribute significantly to steel imports. Countries like China, Japan, and South Korea are primary sources of these imports, which flood the market and suppress steel prices.
Impact on Indian Steelmakers
The safeguard duty is designed to provide a buffer for Indian steelmakers by potentially raising import duties to counteract the effects of steel dumping. However, officials warn that simply raising customs duty may not effectively address import levels stemming from FTAs.
Challenges Ahead
- Steel prices may still be pressured despite higher duties.
- Implementation of safeguard measures requires careful scrutiny of international trade dynamics.
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.