Current Affairs PDF

India drags US to World Trade Organisation for not complying verdict on steel duty

AffairsCloud YouTube Channel - Click Here

AffairsCloud APP Click Here

India has approached World Trade Organisation (WTO) against US for its non-compliance of a verdict on high import duty on certain Indian steel imports.

Background Information:

In December 2014, WTO’s appellate body had ruled that the high duty imposed by the US on the carbon steel products imported from India does not comply with provisions of the Agreement on Subsidies and Countervailing Measures.

Future Course of Action:

  • As of now, India has requested WTO dispute consultations with the US to address US compliance with WTO ruling. If this issue remains unresolved post consultations, India will approach WTO’s compliance panel.Government imposes minimum import price on 173 steel items
  • For this ruling, India has signed a sequencing agreement with the US. Under the sequencing agreement, India has to first approach the compliance panel and only then can it go for arbitration.
  • In order to resolve this issue, US needs to amend its domestic regulations pertaining to carbon steel products.

Earlier, the US had dragged India to the arbitration panel of the WTO alleging that India had failed to remove trade restrictions on US poultry and US poultry products. Including the issue of US duty on Indian steel products and Indian trade restrictions on US poultry, India and US have raised several disputes against each other at WTO.

About World Trade Organisation (WTO):

WTO is an international organisation which acts as a regulator of international trade. The basis for regulation is the trade agreement signed between trading nations. It provides a platform for governments to negotiate trade agreements and settle trade disputes.

  • Founded in: 1995
  • Headquarters: Geneva, Switzerland
  • Current Number of Member States: 164
  • Director General: Robert Azevedo