India to retaliate against US at WTO on steel duties

India may retaliate against the US based on issues that have already been resolved by the World Trade Organization's compliance team in favor of India in a dispute over countervailing duties on steel imports. This can happen if Washington does not appeal the decision, which it can do within the next 60 days.

“There are some unfavorable concerns for India in the WTO's compliance commission report on Friday, but there are other important ones where the solution is favorable. The Indian team is reviewing the report and considering a response, ”an official familiar with the matter told BusinessLine.

However, India can only ask the WTO for retaliation if the US does not appeal the decision, he added. New Delhi is also considering whether it should appeal the rejection of some of its claims.

Reported US Action
On Friday, the report was presented by the WTO's compliance committee set up to determine whether the United States has led to certain compliance measures that were found to be incompatible in the initial dispute with India. A re-investigation by the US on whether to apply countervailing duties on imports of certain hot rolled flat carbon steel products from India, as well as a US statutory measure to assess damages to local firms, were overseen by the scanner.

“The most important decision from India’s perspective is that the Commission supported its claim that the US acted inconsistently with Articles 15.1 and 15.5, ignoring the impact of dumped imports from China, Kazakhstan, Romania, China from Taipei and Ukraine on damages. inflicted on the domestic industry, separate and distinguish it from the effects of subsidized imports and other known factors, ”the official said.

Observing the calculation of the damage caused is important because, in determining whether there were countervailing duties, which are punitive duties, it is not enough to counteract the impact of imports that received subsidies in the home country by simply showing that the product has been subsidized. The importing country must also prove that subsidized imports caused significant damage to its domestic producers.

"We recommend that the United States bring its measures in line with its obligations under the SCM Agreement and the 1994 GATT," the resolution says.

In December 2014, the WTO initially ruled against the imposition of a countervailing duty by the United States on imports of certain Indian steel products.

“The fact that the US has not yet brought its measures in line with the SCM Agreement gives India a strong advantage in this case,” the official said.

In case