India has dragged United States (US) to World Trade Organisation’s (WTO) Dispute Settlement Mechanism over imposition of import duties on steel and aluminium. India stated that decision will of imposition of import duties impact its exports of these products to US and is not in compliance with global trade norms.
India has sought consultations with US as first step of dispute settlement process under the WTO’s dispute settlement mechanism. If the two nations are not able to reach mutually agreed solution through consultation, India may request for WTO dispute settlement panel to review matter.
In March 2018, US President Donald Trump had imposed heavy import tariffs on imported steel and aluminium items, a move that has sparked fears of global trade war. He had signed two proclamations that levied 25% tariff on steel and 10% tariff on aluminium imported from all countries except Canada and Mexico. India had sought exemptions from the hefty tariffs. US decision had not only impacted India’s export of these goods but also affected global trade. India’s exports of steel and aluminium products to US stood at about US $1.5 billion every year. India and US are already involved in disputes at WTO, a global trade body. The disputes are in the areas of poultry, solar and steel. US recently had filed dispute against India on export incentives alleging these support measures harm its workers by creating an uneven playing field.