The WTO’s dispute panel said India’s move to impose safeguard import duty 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 World Trade Organization (WTO) against certain measures taken by New Delhi on imports of iron and steel products. The case was filed by Japan in December 2017.
“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 panel said in its ruling. The duty imposed by India already ended in March.
As India and Japan failed to resolve the issue in the bilateral consultation process, the WTO had set up the dispute resolution panel earlier this year. Japan, which is the second largest steel producer in the world, had alleged that duties imposed on steel imports by India violated 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. 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.
The bilateral trade between the countries stood at $15.7 billion in 2017-18. Trade is highly in favour of Japan as the trade deficit stood at about $11 billion in that fiscal.