Indiaus steel feud escalates as WTO sets up compliance panel

NEWDELHI:THE ongoing trade spat between India and the US has intensified after the World Trade Organisation (WTO) set up a compliance panel following India’s request on the non-implementation of the appellate body’s ruling against countervailing duties (CVD) imposed by the US on Indian hot-rolled carbon steel products.

Confirming the move, a commerce ministry official speaking under condition of anonymity said the compliance panel was set up on Friday after a meeting of the dispute settlement body, despite the US opposing the move. The case pertains to India filing a WTO complaint in 2012 against the US CVD on India’s exports of hot-rolled carbon steel flat products. The dispute settlement panel gave a mixed verdict in July, 2014 which was further challenged by both countries before an appellate panel, the highest adjudicating body at the WTO.

India achieved a significant victory as the appellate body in its report in December 2014 ruled that the CVD imposed by the US is inconsistent with various provisions of the Agreement on Subsidies and Countervailing Measures (ASCM). The appellate body asked the US to amend the US Code which mandates cumulating subsidised imports and dumped imports to arrive at the injury margin. India had particularly challenged this measure as it has been affecting the CVD investigations by the US, leading to exorbitant duties against India.