These measures have led to a significant trade loss for India, prompting New Delhi to assert its rights under the WTO Agreement on Safeguards.
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India has proposed imposing retaliatory duties on imports of certain steel products from the European Union (EU) after the two sides failed to reach a consensus on the bloc’s restrictive safeguard measures on such products.
In a communication to the World Trade Organization (WTO), India said it ‘reserves the right to suspend substantially equivalent concessions or other obligations under a provision of the Agreement on Safeguards, on the EU’s trade.’
The development assumes significance as the EU has extended safeguard duties on imports of certain steel product categories with an out-of-quota duty of 25 per cent, by another two years till 2026. New Delhi said the EU’s step has caused an annual trade loss of $1.47 billion in FY24 to India on which the duty collection at 25 per cent duty would be $368 million.Last week, the EU notified adjustments to its safeguard measures on certain steel imports, with changes set to take effect in two phases. India, China, Turkiye, Korea, Egypt and Vietnam are the key exporters of steel products to the EU. ‘The measure has caused a cumulative trade loss of $6.92 billion to India since July 18, 2018, on which duty collection would be $1.73 billion,’ India said in its communication to the WTO.
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