No additional US scrutiny of steel, aluminium from India

The development tracks Prime Minister Narendra Modi’s state visit to the US this week, which included meetings with US president Joe Biden and other top government officials.

Ravi Dutta Mishra, Rhik Kundu
Updated23 Jun 2023, 11:52 PM IST
Union Minister of Commerce & Industry Piyush Goyal (PTI)
Union Minister of Commerce & Industry Piyush Goyal (PTI)

The US has assured India that a large majority of steel and aluminium products imported from the South Asian country will be excluded from additional processes of scrutiny, commerce minister Piyush Goyal said on Friday.

This is part of the resolution of six out of seven disputes between the two nations at the World Trade Organization (WTO), Goyal said. The development tracks Prime Minister Narendra Modi’s state visit to the US this week, which included meetings with US president Joe Biden and other top government officials.

“They have given us an assurance that at least 70% of all such requests for steel and 80% for all such requests for aluminium application, for products originating from India, will be excluded from additional processes for Section 232,” Goyal said.

Section 232 of the Trade Expansion Act of 1962 authorises the US commerce secretary to conduct comprehensive investigations to determine the effects of imports of any article on its national security.

Mint had on 19 June reported that India and the US are in advanced talks for an out-of-court settlement to resolve major trade disputes at the WTO, and headway is expected soon.

“It’s a package deal, where they (US government) have assured (us) that all the exclusion requests that exporters and importers from the US make—very often there are requests made for exporters for allowing certain products to be exported—will be excluded from under the tariffs of Section 232,” Goyal said. The six trade disputes that will be terminated include three disputes each from the US side and India.

The disputes filed by the US included countervailing measures on certain hot-rolled carbon steel flat products, countervailing measures related to renewable energy sector, and certain measures on steel and aluminium products from India.

Meanwhile, disputes filed by India that are set to be terminated include measures relating to solar cells and modules, additional duties on certain products and other export related measures.

Earlier, the US, in its complaint, had alleged that these “apparent export subsidies” offer financial benefits to Indian exporters, allowing them to sell goods cheaply to the detriment of American workers and manufacturers, in violation of WTO norms that bar subsidies that distort global trade.

This is a very big victory for India and mutually beneficial arrangement for both countries, Goyal said. He added that India continues to seek the restoration of the Generalized System of Preferences (GSP) status that was withdrawn by the US government in 2019.

India was the biggest beneficiary of the GSP status in 2017, with $5.7 billion worth of imports into the US given duty-free status. About 2,000 products including auto parts and textile materials were allowed to enter the US duty-free.

“It (GSP) is a matter for us to pursue and have dialogue. However, the US Congress will have to take the final decision (on this),” Goyal added.

Meanwhile, the commerce ministry-backed Export Credit Guarantee Corporation of India (ECGC) on Friday said it has carried out the expansion of 90% insurance cover for exporters with a credit limit of 50 crore, a cover limited to 20 crore earlier.

“Earlier, ECGC used to compensate 60% of the export losses incurred by exporters. Last year, ECGC increased the compensation to 90% with an export limit of 20 crore, which benefited the small exporters. When 90% of the losses are being compensated, the account becomes an AA count, which lowers the interest rate,” Goyal said.

“From 1 July 2023, the scheme will be extended to accounts that borrow up to 50 crore for export purposes,” the minister said.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
First Published:23 Jun 2023, 11:52 PM IST
HomeNewsIndiaNo additional US scrutiny of steel, aluminium from India

Most Active Stocks

Indian Oil Corporation

166.90
03:58 PM | 12 JUL 2024
-7.6 (-4.36%)

Tata Steel

168.70
03:58 PM | 12 JUL 2024
-0.3 (-0.18%)

Bharat Electronics

333.30
03:59 PM | 12 JUL 2024
-2.25 (-0.67%)

Wipro

560.05
03:56 PM | 12 JUL 2024
25.7 (4.81%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

KPIT Technologies

1,864.00
03:57 PM | 12 JUL 2024
154.25 (9.02%)

Inox Wind

171.90
03:59 PM | 12 JUL 2024
13.85 (8.76%)

Zensar Technologies

768.20
03:29 PM | 12 JUL 2024
50.45 (7.03%)

Coforge

5,950.05
03:29 PM | 12 JUL 2024
386.65 (6.95%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    74,481.00218.00
    Chennai
    73,972.00-727.00
    Delhi
    74,771.00-218.00
    Kolkata
    73,972.00-218.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.76/L0.01
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsPremiumInstant LoanMint Shorts