Indias steep safeguard duties on some imports draw US, European Union ire
EU accuses India of not meeting requirements of WTOs Safeguard Agreement
New Delhi, May 5:
The European Union, the US, Japan, Russia and Chinese Taipei are upset over the high number of investigations being carried out by India to impose steeper import duties on a number of products across sectors.
India is doing this to protect its industry from cheap imports.
The higher duties are in the form of penalties imposed under the World Trade Organizations Safeguard Agreement. This Agreement allows such levies in case there is a surge in imports hurting the domestic industry.
The Government recently notified five safeguard investigations on sodium citrate, bare elastomeric filament yarn, saturated fatty alcohol, not-alloyed ingots of unwrought aluminium, and seamless pipes. Three of the investigations were initiated in the first quarter of 2014.
India has also been accused by the 27-member EU of not meeting the requirements of the Safeguard Agreement while launching these investigations, an official who attended a recent meeting of the WTOs Safeguards Committee, told Business Line.
India, in its defence, has submitted that its safeguard investigations feature checks and balances that involve several Government agencies and are consistent with the WTO agreement, said a Commerce Ministry official.
The US pointed out that India has imposed 30 safeguard measures since 1995, the highest by any WTO member. It said India should reflect on its methods and procedures in the light of the Safeguard Agreement.
In February, the Finance Ministry imposed a safeguard duty of 30 per cent on import of sodium nitrite a white crystalline powder mostly used in pharmaceuticals, dyes, construction and chemical industries for a year.
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Indias steep safeguard duties on some imports draw US, European Union ire