After India and Japan failed to mutually resolve the dispute over imposition of safeguard import duty on iron and steel products; the World Trade Organization (WTO) has set up a panel to resolve the dispute between the two countries. The two sides failed to resolve the issue in the bilateral consultation process and Japan sought formation of dispute resolution panel.
Japan, which is the second largest steel producer in the world, had alleged that duties imposed on steel imports by India violates WTO trade norms and dragged India to the WTO against certain measures taken by it. Japan, in its request, reiterated that India’s safeguard measures in question were inconsistent with its obligations at the WTO and since the measures will expire on March 13, 2018, it hoped the new panel would observe the time frames specifically prescribed in the WTO’s Dispute Settlement Understanding for the purpose of a prompt resolution of the dispute. India on its part had objected to Japan’s request to the World Trade WTO to put in place early time frames for a “prompt’’ resolution of its dispute against India’s penal duties on steel imports.
In September 2015, India imposed provisional safeguard duty of 20 per cent on import of certain categories of steel with a view to protect domestic producers. Later in November last year, the government slapped the final duty. The duties are being slowly tapered off but would be in place till March 2018.