India-US trade oil in troubled waters over wave of protectionism

Even as India opens its doors to US oil and gas, trade ties between the two nations do not look to be improving

On March 29, when the first American shale gas lands at Dabhol regasification terminal in Maharashtra, US president Donald Trump’s war cry against trade imbalances will be partly addressed. Trump earlier this month ordered imposing duty on steel and aluminium imports from all countries except Canada and Mexico, unleashing what is being seen as a “trade war” that goes against the spirit of the World Trade Organisation. Protection of domestic industry and generating employment are the underlying reasons for imposing these duties, under section 232 of the Trade Expansion Act that applies in cases where national security is at risk.