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WTO to set up dispute panel in India-US case on steel, aluminium duties

Press Trust of India  |  New Delhi 

The of (WTO) has agreed to set up a panel to assess if high customs duties imposed by the US on certain and infringes global trade norms, an said.

had approached Geneva-based WTO for setting up of the dispute panel as both the countries failed to resolve the issue in a bilateral consultation process under the dispute settlement mechanism of the WTO.

"The has agreed to establish a panel to rule whether additional duties imposed by the US on imports of certain and comply with WTO rules," the added.

Consultation is the first step of the dispute settlement process at the WTO. If the two countries are not able to reach a mutually agreed solution through consultation, a country can request for a WTO dispute settlement panel to review the matter.

Imposition of high import duties on these items by the US has impacted exports of these products by Indian businesses. has alleged that the US move is also not in compliance with global trade norms.

Besides India, Russia, Norway, Canada, Mexico, Switzerland, and have also dragged the US in the WTO on Washington's move to impose 25 per cent and 10 per cent import duties on certain and aluminium products, respectively, which triggered global trade tensions.

has a significant export interest to the US on the steel and aluminium sector. India and aluminium goods worth about USD 1.6 billion a year to the US.

The US had imposed these duties on grounds of national security.

Biswajit Dhar, at Jawaharlal Nehru University, stated that the US decision would not only impact India's export of these goods but also affect global trade.

Some experts, however, said that dragging the US in the dispute over the issue is not in favour of India, as has a trade surplus with

India's exports to the US in 2017-18 stood at about USD 48 billion, while imports were USD 26.7 billion.

Both the countries are also involved in several other disputes in the WTO. Those disputes are in the areas of poultry, export incentives, solar and steel.

In retaliation to the imposition of duties by the US, India has decided to increase customs duty on 29 American products such as almond, walnut, pulses and iron and The duties would come into effect from December 17.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, December 04 2018. 19:05 IST