India, China, Russia, 5 other WTO members slam EU, UK over steel duty

Countries say European bloc's safeguard duty was inconsistent with regulations of the global trade organisation

India and seven other members of the World Trade Organisation (WTO), including China, and Russia, have criticised a decision by the European Union (EU) to extend a safeguard measure on specific steel products after June 30, according to a report in the Economic Times (ET).

In a WTO meeting, WTO members contended that the EU's safeguard duty, implemented in response to the United States' imposition of supplementary duties on certain types of steel imports from the bloc in 2018, was inconsistent with the regulations of the global trade organisation, ET reported.

WTO members, including India, also condemned comparable duties enforced by the United Kingdom (UK). ET cited a Geneva-based official as saying, "The EU said it has evidence that the steel safeguard measure continues to be necessary."

 

In the meeting, China and Korea said the justification for extending the measure was flawed. Brazil contended that sustainable solutions to the global issue of excess steel capacity should rely on multilateral or pluri-lateral cooperation rather than unilateral protectionist measures, according to ET.

Retaliatory measures

In 2021, India had suggested imposing additional import duties totaling Euro 292 million on specific products from the EU in response to the safeguard measures.

Subsequently, it suggested implementing additional customs duties of 15 per cent on the import of 22 products, including whisky, cheese, and diesel engine parts, from the UK, as a response to the latter's imposition of restrictions on steel products following its departure from the EU, the ET report said.

The UK will determine whether to extend the measure after June 30.

"Several members said the UK has been imposing safeguard measures against imports of steel products since it was a member of the EU and continued to do so even after Brexit," the official said.

According to ET, WTO members claimed that the UK neglected to conduct an investigation justifying the measures in accordance with WTO rules. Under the Safeguards Agreement of the global trade body, members have the authority to temporarily restrict imports of a product by implementing higher tariffs or other measures if their domestic industry is significantly harmed.

The measures are applicable to all imports, irrespective of their origin country, and are limited to a maximum duration of four years. However, developing countries, which contribute less than 3 per cent of total exports, are exempted from these measures, ET reported.