‘Mechanism to watch U.S. steel import tariffs’

India and U.S. agree to set up joint monitoring mechanism to enable exports of steel and aluminium products without extra duties.

Ministries of Mines, Steel and the Department for Promotion of Industry and Internal Trade (DPIIT) will set up an internal mechanism to monitor the export of steel and aluminium products at concessional duties to the U.S., an official said.

Indian exports of these products were earlier attracting additional duties in the U.S., as Washington, in 2018, imposed a 25% import duty on steel products and 10% on certain aluminium products on grounds of national security. In retaliation, India in June 2019, imposed additional customs duties on 28 American products. The U.S. is now allowing these imports from India without paying the extra 25% and 10% duties in return for New Delhi’s decision to remove retaliatory duties on eight American products like apples and walnuts.

The official also said the two countries have agreed to set up a joint monitoring mechanism (JMM) to enable exports to America of at least 3.36 lakh tonne of certain steel and aluminium products in a year without paying extra duties.

If Indian exporters face any bottleneck, it would be conveyed to the Commerce Ministry and will be taken up with the U.S. during the meetings of the JMM.

During PM Modi’s June visit last year, the two countries decided to remove trade irritants and as part of that, both sides agreed to end six trade disputes at the WTO. They mutually resolved those seven disputes and India has decided to remove additional duties on eight U.S. products.