India and the US have agreed on the terms for joint
monitoring of the former’s steel and aluminium exports to the world’s largest
economy.
India's exports of steel to the US stood at
$4 billion in FY23. (Image/Reuters)
India and the US have
agreed on the terms for joint monitoring of the former’s steel and aluminium
exports to the world’s largest economy, without being subjected to additional
duties.
This follows the two sides
deciding to end all bilateral trade disputes that were pending at the World
Trade Organization during Prime Minister Narendra Modi’s
state visit to Washington in June 2023.
The US has agreed to let
in 336,000 tonne of steel and aluminium from India with the waiver of additional
duties that were imposed under a national security law by the Trump
administration in 2018.
These duties – at 25% and
10% on certain steel and aluminium products, respectively – were also imposed
on a few other countries, including China, Russia, Norway, Turkey and
Switzerland.
The June decision also
included India waiving its additional duties of 20% each on apples and walnuts,
and `20 per kg on almonds imposed on imports from the US in 2019, over
most-favored nation (MFN) tariffs. These extra imposts were in retaliation to
the US’ state protectionist measure of increasing tariffs on specified steel
and aluminium products.
Of course, there will be no reduction on the MFN
duties on apples, walnuts and almonds, which still apply to all imported
products, including US-origin products, at 50%, 100% and `100 per kg,
respectively.