The World Trade Organization’s (WTO) dispute panel has said that India’s safeguard duty move on some iron and steel products was inconsistent with certain global trade norms. The ruling comes in the backdrop of Japan dragging India to the WTO against certain measures taken by New Delhi on imports of iron and steel products. The case was filed by Japan in December 2017.
The panel in its ruling has said “having found that India acted inconsistently with certain provisions of the GATT 1994 and the Agreement in Safeguards, we recommend that, to the extent that the measure continues to have any effects, India bring it into conformity with its obligations under those agreements.” The duty imposed by India already ended in March this year. As India and Japan failed to mutually resolve the dispute over imposition of safeguard import duty on iron and steel products, the WTO had 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.
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, it was reduced and extended till March this year. The dispute assumes significance as India and Japan implemented a comprehensive free trade agreement in 2011. It gave easy access to Japan in the Indian steel market.