India's Retaliatory Duties Proposal Targets EU Steel Measures

India has proposed retaliatory duties under WTO rules due to the EU's trade measures on steel, causing substantial losses for India. The ongoing trade dispute failed to reach a resolution, affecting India's steel exports significantly. India continues talks to resolve the trade conflict and boost trade ties.

In a move that highlights escalating trade tensions, India has proposed imposing retaliatory duties on specific goods imported from the European Union, according to WTO norms. This development follows a breakdown in consensus with the EU over restrictive safeguard measures on steel products.

The World Trade Organisation was notified of India's intention on March 27. The communication detailed India's reservation to suspend concessions or fulfill obligations under the Safeguards Agreement, citing the EU's actions have inflicted a significant trade loss of $1.472 billion for 2023-2024 alone. The duty collection could total $368 million.

Consultations between India and the EU conducted on March 19 failed to yield an agreement. The EU has extended their safeguard measures, affecting India's substantial steel export interests. Both sides remain engaged in negotiating a free trade agreement aimed at strengthening economic ties.

(With inputs from agencies.)