Evaluating impact of US duties on steel, aluminium: Jitin Prasada in RS

The US has imposed additional import duties on steel and aluminium and the government is evaluating its impact, Parliament was informed on Friday.

 

In a written reply to the Rajya Sabha, Minister of State for Commerce and Industry Jitin Prasada said there has been the imposition of these duties on steel and aluminium imports by the US from all countries without any exemption.

 

"The impact of these duties which are an enhancement over existing such additional duties is being closely evaluated due to the fact that there are no exemptions as compared to exemptions earlier to certain major exporting countries in this sector," he said.

 

As of date, there has been no imposition of country-specific reciprocal tariffs by the US on India, he added.

 

The minister informed that India continues to engage with the US to achieve enhancement and broadening of bilateral trade ties in a mutually beneficial and fair manner.

 

The two countries aim to more than double trade to $500 billion by 2030 to be achieved by deepening the trade.

 

"Both countries have committed to negotiate a mutually beneficial, multi-sector Bilateral Trade Agreement under which the countries would focus on increasing market access, reducing tariff and non-tariff barriers, enhancing supply chain integration and resolving key trade issues bilaterally," Prasada said.

 

Replying to a separate question whether the government will protect Indian farmers' interests in future trade agreements, he said to protect the interests of the Indian farmers and the agriculture sector, trade agreements provide for maintaining sensitive, negative or exclusion lists of items on which limited or no tariff concessions are granted.

 

In addition, in case of a surge in imports and injury to the domestic industry, a country is allowed to take recourse to trade remedial measures such as anti-dumping and safeguards on imports within the period as mutually agreed to by the parties under the trade agreements, the minister said.

 

In another reply, Prasada said that FTAs leverage trade complementarities to boost exports and drive sustainable economic growth through trade facilitation, technical and digital collaborations and global competitiveness.

 

"While negotiating FTAs, the endeavour is to deliver a comprehensive, balanced, broad-based and equitable agreement based on the principle of fairness and reciprocity that offers protection to domestic industry and benefit to the stakeholders," he said.

 

"For addressing concerns related to trade deficits and ensuring that India's trade agreements benefit domestic industries and workers, sector-specific consultations are carried out."

 

For this, he said, FTAs cover trade in goods, services, movement of natural persons, customs procedures, trade facilitation, and technical barriers to trade.

 

Replying to another question on the US, he said India and the US resolved six trade disputes filed between 2012 and 2019 in the WTO (World Trade Organisation) and reached a Mutually Agreed Solution (MAS) in 2023.

 

As part of the agreement, India rescinded additional duties on eight products, which were imposed by India, and in return, the US agreed that it would strive to ensure effective market access opportunities for Indian exporters of steel and aluminium while reviewing Section 232 exclusion requests as consistent with USA law.

 

India-UK trade pact to boost exports

 

The proposed free trade agreement with the UK is expected to boost India's exports in various sectors, including leather, textile, jewellery, marine and processed agri products, parliament was informed on Friday.

 

Minister said the pact has great potential for increasing exports in service sectors like IT/ITES.

 

In negotiations with the UK, both sides aim to conclude a fair, equitable, mutually beneficial and commercially meaningful trade deal, which takes into consideration the needs and concerns of all the stakeholders.

 

"The proposed trade deal with the UK is expected to increase India's exports in various sectors, including Leather, Textile, Jewellery, Marine and processed Agri products," he said.

 

The India-UK Free Trade Agreement negotiations were launched on January 13, 2022. 14 rounds of negotiations have been held so far.

 

Gold imports from 48 nations in FY24

 

India imported gold from 48 countries in 2023-24 and different import duties on the precious metal are due to the country's strategic trade interests under FTAs, Parliament was informed on Friday.

 

Replying to the Rajya Sabha, Jitin Prasada said that India applies import duty on gold either on a Most Favoured Nation (MFN) basis or under Free Trade Agreement (FTA) basis.

 

Under MFN rates, import duty on gold bullion is 6 per cent, while for gold dore (unrefined gold) is 5.35 per cent.

 

"India imported gold from 48 countries in 2023-24," he said, adding in general, demand for lower duty on gold by other countries is discussed during FTA negotiations which is assessed based on various factors such as domestic industry interests and economic considerations.

 

Current import duty on gold is zero under India's trade pact with ASEAN, Korea, Japan, and Malaysia.

 

Under the India-UAE trade agreement, a 5 per cent duty is imposed on gold bullion and 4.35 per cent for gold dore up to TRQ (tariff rate quota) of 160 tonnes. Above this quantity, there are no concessions.