India asks WTO to put up dispute settlement panel for US aluminium and steel import duties

An official reported to Business Standard India has taken forward the trade dispute with America in the World Trade Organisation (WTO) and asked the Geneva-based multilateral body to set up a panel against the US for imposing high import duties on certain aluminium and steel products.

According to the report, India took this move after it failed to resolve the issue through a bilateral consultation process with the US under the dispute settlement mechanism of the WTO.

Per the rule, consultation was the first step of the dispute settlement process but if that failed to reach a mutually agreed solution, then the country could request for a WTO dispute settlement panel to review the matter.

"So, now, India has asked the WTO for the establishment of the dispute panel on the matter," the official said.

India claimed imposition of high US import duties on Indian aluminium and steel products impacted its exports. Moreover, the US move was also not in compliance with the global trade norms.

Russia, Norway, Canada, Mexico, Switzerland, and the European Union have also reportedly dragged the US to the WTO for the same reason.

"We have discussed the matter with all these countries. A common dispute panel could be formed on the matter," the official added.

As per estimates, India exports aluminium and steel goods worth US$ 1.6 billion a year to the US.

Biswajit Dhar, professor of economics at Jawaharlal Nehru University, said the US decision would not only impact India's export of these goods but would also affect global trade.

"The entire basis of the US action is based on its own perception of security threat issue. This cannot be a ground to impose these duties," Dhar said.

Some experts, however, also opined differently. The said dragging the US in the dispute would not be favourable to India, considering New Delhi having a trade surplus with America.

India's exports to the US in 2017-18 stood at about $48 billion, while imports were $26.7 billion.

Both the countries are also involved in several other disputes in the WTO. Those disputes are in the areas of poultry, export incentives, solar, and steel.