ET reported that India has decided to seek consultations with the US on the wrongful imposition of penal duties on its steel exports, a first step that a country takes before dragging another to the dispute settlement mechanism of the World Trade Organsiation or WTO.
Indian commerce secretary Mr Rahul Khullar, who is on an official visit to Washington, is likely to ask the US to begin consultations with India on the issue.
A government official told ET that "We have had our legal firms examine the issue and we are sure that the basis for their calculation of the penal levies is faulty.”
Once bilateral consultations begin, India will give its legal views to the US on the issue and if the talks are unsuccessful, it could take the next step of discussing the issue at the WTO. If bilateral consultations at all levels fail, a country can then ask for setting up of a dispute settlement panel to settle the issue.
A representative from a steel company that has stopped all exports to the US said that "The US is continuing its practice of faulty pricing calculations and if not checked India will never be able to export any steel products to the country.”
The US imposed steep penal levies in the form of countervailing and anti dumping duties on Indian steel companies such as Essar, TATA, JSW and SAIL making exports from these companies unviable. Earlier last week the US initiated fresh investigation against steel pipes from India despite New Delhi objecting to such duties on other steel products on the ground that the basis for calculating domestic prices of steel for imposing penalties was faulty.
Source : steelguru.com