India has initiated a discussion with the EU on the proposed adjustment of security measures on steel imports, which may affect Indian exporters.
“In a statement to the World Trade Organization, New Delhi said that because it has a substantial trade interest in steel exports, it wants to participate in discussions on how these measures should be implemented,” the official said.
EU tariff quotas
The EU imposed tariff rate quotas (TRQs) on steel imports as a precautionary measure in 2018 following the US decision to impose additional import duties on steel from a number of countries, including Russia, India and Turkey.
The bloc was worried about the sharp increase in imports due to the deviation from the US market. He set quotas on steel imports for exporting countries, beyond which goods will be subject to additional import duties of 25 percent.
“Last year, the EU replaced temporary safeguards with specific measures, and Indian exporters have adapted their exports in line with the established TRQ. But now the EU has proposed adjustments to the TRQ administration that could complicate negotiations, ”the official said.
India is one of the main steel exporters to the EU, which also includes China, Russia, South Korea, Turkey and Ukraine.
Indian export issues
Steel exports from India to the EU have been hit hard since safeguards were introduced in 2018.
Due to restrictions on steel imports imposed by major consumers, including the EU and the US, India became a net steel importer in 2018-19, for the first time in three years.
According to the latest submission by the EU, it wants to move to quarterly management of all country-specific quotas to ensure that imports are aligned and there is no jump during the remainder of the measures. He also wants to introduce an improved residual quota access regime that will be adopted by small exporting countries.
“India wants to better understand how the proposed measures could affect exporters from the country,” the official said.
When a country uses quota limits as a precaution, basic discipline must be followed, according to a trade expert in Delhi.
“The country cannot reduce the amount of imports below the average imports over the past three years. If this is the case, then it is necessary to indicate some reasons, ”he said.