During Indian Prime Minister Narendra Modi's recent visit
to the U.S., six long-standing disputes at the WTO were agreed to be resolved.
- Most of India's imported steel and aluminum products will no
longer face additional scrutiny, a decision welcomed by India's business
community.
- The bilateral goods trade between India and the U.S. rose to
$128.8 billion in 2022-23 from $119.5 billion in 2021-22, and the tariff
cuts are expected to expand market opportunities for American agricultural
producers and manufacturers.
Via AG Metal Miner
Indian Prime Minister Narendra Modi recently visited the United
States. During his stay, the two nations agreed to resolve six long-standing
disputes at the World Trade Organization (WTO). U.S. steel news outlets watched
this exchange particularly closely. This is because one of the subjects of
debate was India’s imposition of retaliatory tariffs on U.S. products,
including steel. Many analysts expect this development to stimulate trade
between the U.S. and India while offering crucial tax benefits to Indian
exporters.
According to a report in The Economic Times,
U.S. Trade Representative Katherine Tai recently confirmed that India would
remove the retaliatory tariffs it imposed in response to the U.S. Section 232
national security measures on steel and aluminum.
India’s Commerce Minister Piyush Goyal also confirmed these reports.
Specifically, he mentioned that Mr. Modi’s visit to the U.S. led to a
“significant” announcement from President Joe Biden and other high-ranking
officials. In the announcement, Biden assured markets that most of India’s
imported steel and aluminum products would not suffer additional scrutiny.
Indian and U.S. Steel News Outlets React Positively
So far, Indian experts seem to feel that excluding most Indian
imports from additional scrutiny will prove a welcome relief for businesses.
After all, the country is a major exporter of steel and aluminum products to
the U.S. Earlier, to protect its domestic industry, the U.S. had imposed
tariffs and trade restrictions on steel and aluminum imports from various
countries, including India. With this new decision, the industry hopes to see a
positive shift in the United States’ approach to trade relations with India.
The two countries plan to resolve the disputes through mutual agreement
and subsequently inform the WTO in Geneva about the resolution. This is crucial
considering the sheer volume of trade between the two nations. Indeed, the
bilateral goods trade between India and the U.S. experienced a rise to $128.8
billion in 2022-23 from $119.5 billion in 2021-22. Moreover, many analysts
expect these tariff cuts to reinstate and expand market opportunities for
American agricultural producers and manufacturers.
The Move Ends Five Years of Harsh Tariffs
According to a news report in BusinessWorld,
under the newly established market access agreement, the U.S. Department of
Commerce will approve 70% of steel and 80% of aluminum applications for
products originating in India. It will be the importer’s responsibility to
submit applications on behalf of the exporters through the Section 232
exclusion process.
In 2018, the U.S. implemented import duties of
25% on specific steel products and 10% on certain aluminum products. At the
time, officials cited concerns related to national security. In response, India
imposed customs duties on 28 American products. India also lodged a complaint
against the U.S. at the WTO concerning the imposition of these duties.