EU threatens India with steel tariffs

EU threatens India with steel tariffs

Brussels: The European Union (EU) threatened to impose tariffs on stainless steel from India, saying EU producers including Acerinox SA and Deutsche Edelstahlwerke GmbH may be victims of subsidies.

The EU opened a probe into whether Indian manufacturers of stainless steel bars and rods, which are used in construction, domestic appliances and cars, receive trade-distorting government aid.

The investigation will determine whether the Indian producers are being subsidized and whether this subsidization has caused injury to the EU industry, the European Commission, the 27-nation bloc’s trade authority in Brussels, said today in its official journal.

The inquiry stems from a 15 February complaint by the European Confederation of Iron and Steel Industries on behalf of producers representing more than 25% of EU output of stainless steel bars and rods, according to the commission.

The lobby group, also known as Eurofer, alleges that Indian producers receive federal and regional subsidies.

Eurofer says EU makers of stainless steel bars and rods have suffered substantial adverse effects as a result of an increase in imports from India, according to the commission.

The complaint shows that the volume and prices of the imports have hurt the sales, prices and market share of European manufacturers, the commission said.

Under EU practices, the commission can impose provisional anti-subsidy duties for four months and the bloc’s national governments can turn those measures into definitive five-year duties at the same or different rates.

The commission has nine months from the start of an investigation to decide on provisional measures. EU governments have 13 months from the beginning of a probe to impose five-year anti-subsidy—or countervailing—duties.