Friday, 16 November 2018

US import tariffs on steel, aluminium: India hits back, to suspend concessions on 30 products

Responding to the US import tariffs on certain steel and aluminium products, India has decided to suspend concessions on 30 products being imported from the US. In a notification to the World Trade Organisation (WTO) on June 14, India emphasised that the tariffs will be substantially equivalent to the amount of trade affected due to the US’ measures. The products are likely to include motorcycles, certain iron and steel goods, boric acid and lentils.

As duties hiked by the US on certain steel and aluminium products would have implications of about USD 241 million on India, the raise in tariffs proposed by New Delhi too would have an equal implication on America.

“The US would be collecting USD 241 million worth of duties by hiking tariffs on certain steel and aluminium items from India, we also proposed to withdraw concessions of similar amount from these 30 products imported by India from the US,” a source said.

Earlier in May, India proposed to raise duties by up to 100 per cent on 20 products such as almonds, apple and specific motorcycles imported from the US.

The additional duty proposed to be hiked on these items ranges from 10 per cent to 100 per cent.

“The revision is being provided to adjust the products and the tariff rates in accordance with India’s rights reserved vide its notification to the Council for Trade in Goods contained in the WTO document…of May 18, 2018.

“India hereby reiterates its decision to suspend concessions or other obligations notified to the Council for Trade in Goods on May 18, 2018…of the General Agreement on Tariffs and Trade 1994 and Article 8.2 of the Agreement on Safeguards, that are substantially equivalent to the amount of trade affected by the measures imposed by the United States,” according to a communication by India to WTO.

It said that the proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the US, based on the measures of the America.

“India reserves its right to further suspend substantially equivalent concessions and other obligations based on the trade impact resulting from the application of the measures of the US,” it added.

The country has proposed this move under the WTOs Agreement on Safeguards.

On March 9, US President Donald Trump imposed heavy tariffs on imported steel and aluminium items, a move that has sparked fears of a global trade war.

Trump signed two proclamations that levied a 25 per cent tariff on steel and a 10 per cent tariff on aluminium imported from all countries except Canada and Mexico.

Earlier India had stated that these suspension will come into effect earlier than June 21, 2018, in case the US decides to continue the period of application of the measures.

It said that the duty imposed by America has affected steel exports by USD 198.6 million, while the same on aluminium was USD 42.4 million.

The other items include chickpeas, fresh apple, walnut, refined palmolein, motor cycle with engine capacity over 800 cc, diagnostic reagents and threaded nuts.

India has also dragged the US to the World Trade Organisations dispute settlement mechanism over the imposition of import duties on steel and aluminium.

India’s exports of steel and aluminium products to America stood at about USD 1.5 billion every year. Its exports to the US in 2016-17 stood at USD 42.21 billion, while imports were USD 22.3 billion.

Adam Rizvi has a unique talent for publishing to marketing to managing projects, writers & assigning the task to correspondents. Edits an e-paper & cover the news. An activist, spend time with family & friends. His adorable daughters, Alizah & Anum are his lifeline. He spends his time by reading, swimming, hiking, cycling and watching with them their favorite TV shows, & fixing the Big Old House where he lives. Studied literature & management.Volunteer for non-profits. President of a Travel Agency. Publisher. Circulated the newspapers. Acted & Assisted in directing & production of the award-winning film & TV Serial. Scripted a little. Modelled. Emceed the live shows & judged competitions. A caring sibling and was an obedient son of his late doting parents whom he misses dearly.Adam uses his various positions & experiences in building the strong relationship with all. Appreciates his articles being read, commented, liked and shared. He can be reached at his personal email: mediaiss@gmail.com.

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