WTO rules against US on steel dispute with India
The Appellate Body of the World Trade Organization (WTO) has ruled against the United States (US) for imposing high duty on imports of certain Indian steel products.
In its ruling the body has mentioned that the high duty imposed by the U.S. on the certain Indian steel imports is ‘inconsistent’ with various provisions of the Agreement on Subsidies and Countervailing Measures (ASCM). Earlier, US had imposed Countervailing Duty (CVD) measures on India’s hot-rolled carbon steel flat products under various provisions of the ASCM.
Due to this imposed CVD India had had affected India’s trade as 7 steel products out of the current 10 products suffered from inconsistency due imposed CVD.
Implications of this decision
- It will help India’s domestic steel manufacturers especially PSU’s which were suffering due to inconsistent practices by the US.
- Now, it is binding on US to amend its domestic law to be WTO compliant.
- Thus, Appellate Body’s ruling has helped India to achieve significant victory at the WTO against the US.
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Month: Current Affairs - December, 2014