A three-year import tariff of 11-12 per cent may be imposed on some selected steel products, if it heeds to a communique by its Directorate General of Trade Remedies (DGTR) on August 16.
Steel Import Tariffs
In the first year, the proposed tariff on steel imports would begin at 12%, reduce to 11.5% in the second, and further drop to 11% in the third, according to Reuters.
Curbing Oversupply
According to Hindustan Times, "the move would curb rising shipments from top steel producers like China, whose oversupply has disrupted global markets."
Recent Imports Spike Can Hinder Domestic Steel Sector
The DGTR notification stated that the authority concludes that there is a recent, sudden, sharp and significant increase in imports. It added that it could cause serious injury to the domestic steel sector.
India Imposes Safeguard Duty
This latest recommendation follows a temporary 12% safeguard duty imposed by India in April for 200 days after preliminary findings showed a steep increase in steel imports. The final recommendation now formalises the case for longer-term protection.
DGTR Statement
A bulk of steel volumes are lying with manufacturers across the world, the DGTR said. This is due to 50% tariffs on steel imports into the US, coupled with similar measures by other countries.
Need To Address Serious Injury Threat
The DGTR stated that the safeguard duty must address, not only serious injury suffered by the domestic industry, but also the threat of serious injury that is likely to arise in the future.
International Trade Protection
A wave of international trade protection against Chinese steel exports gave way to this recommendation.
Trade Frictions
Import Tariffs on steel by US President Donald Trump have caused trade frictions against Chinese steel, with countries including South Korea and Vietnam imposing anti-dumping levy.
