Despite a favourable order from the World Trade Organization (WTO), India is set to pursue the steel import duty case against the US. New Delhi will also review other products on which the US has imposed similar duties.
In a ruling that came late on Monday, WTO's Dispute Settlement Body (DSB) had said the US was unjustified in imposing countervailing duties (CVD) on India's exports of hot rolled carbon steel flat products. It termed the US act "inconsistent with WTO law on subsidies".
"It is a mixed judgment. The important issues have been in our favour, but there are still some issues we are not happy about," Commerce secretary Rajeev Kher told Business Standard. Kher said this is an important development. "But there are several smaller procedural issues where the decision is in favour of the US. We will continue the case further," he added.
For instance, DSB did not consider India's claim that NMDC is not a public body according to the global trading norms. This is where India is planning to ask for a re-appeal.
The steel exporters involved in the case are JSW Steel, Vijayanagar Minerals, Tata Steel and NMDC. India had dragged the US into WTO in this case in April 2012.
In its ruling, the WTO panel said the US law mandating cumulation of non-subsidised imports with subsidised imports while determining injury in a CVD investigation is inconsistent with WTO obligations. This ruling questions the validity of a number of other CVD proceedings conducted by the US on products of Indian origin.
In a statement, the Ministry of Commerce and Industry said the government is reviewing other Indian products on which the US has imposed a similar CVD based on the present judgment.
"We have to remember that the ruling does not state that the US has to remove the duties. The US has said it is weighing options, which means they can either remove the CVD or recalculate the duties, in which case Indian exports continue to remain uncompetitive in that market. The ruling, even though it has favoured India, does not mean Indian steel exports will increase in US," said Abhijit Das, head, Centre for WTO Studies, Indian Institute of Foreign Trade.
In a significant development, the WTO panel also said the US had no factual basis to hold that the grant of mining rights for iron ore and coal was a subsidy. The panel also held that the US should not have ignored market prices available in India while determining the amount of subsidies, if any.
"India or even the US can always go for another appeal and seek a resolution. This judgment shows the importance of WTO DSB in today's trade scenario," said Ram Upendra Das of New Delhi-based Research and Information System for Developing Countries.
Source:- business-standard.com
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