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WTO rules against US duties on Indian steel products

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Press Trust of India New Delhi
Last Updated : Aug 01 2014 | 5:04 PM IST
The dispute settlement panel of the WTO has ruled in India's favour against the USA's imposition of higher duties on New Delhi's steel imports, Parliament was informed today.
"In one of the major rulings in favour of India, the panel has held that the US law mandating cumulation of non- subsidised imports with subsidised imports while determining injury in a countervailing duty (CVD) investigation is inconsistent with WTO obligations under subsidies," Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha.
She said that panel has held that the US had no factual basis to hold that the grant of mining rights for iron ore and coal was a subsidy.
"The panel held that the US was not correct in applying 'adverse facts available' standard in 73 out of 85 instances for imposition of penultimate duty," she said.
Further, the minister informed that the panel has not accepted India's claim that NMDC was not a "public body" within the meaning of WTO law.
"The panel ruling on cumulation potentially questions the validity of a number of other CVD proceedings conducted by the US on products of Indian origin," Sitharaman said.

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She said that India would evaluate such cases on which the US has applied the same provision to arrive at CVD.
The US Department of Commerce (USDOC) had imposed CVD on India's exports of hot rolled carbon steel flat products.
The measures continue to be in force and adversely impact the Indian exports.
Replying to a separate question on immigration, the minister said the commerce department has viewed with great seriousness some of the developments of the US regarding the mobility of Indian IT professionals to the US.
"Commerce Secretary had written to USTR apprising him of his concerns on the proposed comprehensive Immigration Reforms Legislation," she said.
The reforms bill seeks to deny access to visas or place additional visa related restrictions including higher fees on H1-B and L-1 visas either based on 50:50 model.
"These restrictions, including language which negatively impacts our companies on important issues such as non-displacement and wage level classification. This is not only discriminatory but also creates an unequal playing field for Indian IT companies," she said.
She added that any legislation that seeks to selectively apply visa related restriction only against Indian IT business interest in the US would not be in accord with the spirit of deepening strategic partnership between the two countries and may impact on the common efforts to strengthen economic and trade cooperation that the governments of the two countries are actively pursuing.

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First Published: Aug 01 2014 | 5:04 PM IST

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