India will now take retaliatory measures against the goods originating from the EU. The country took the measure after it witnessed an increase in trade loss for the past five years. The European Union’s steel tariffs have been in action since 2018. It was originally till June 2021. However, the union expands it further to 30 June 2024. Although it came to an end in June, the EU renewed it again three months ago to extend it to June 2026. India is standing against these steel tariffs. The main reason is the huge amount of trade loss that the country has gone through in the past few years.
Why India Decides To Impose Retaliatory Measures Against European Union’s Steel Tariffs
India decides to put retaliatory measures against European Union Steel tariffs. It informs WTO recently about this decision. India says that it will be increasing tariffs on the products originating in the EU. However, it will apply to some products. The country says that it will be imposing an equal amount of tariffs on these products which is its right. The decision will come into action soon. Thus, the tariff rates on the products will be adjusted accordingly. The country already faced a trade loss of $4.412 Billion in past five years. Since the start of the European steel tariffs, $ 1.103 Billion worth of tariffs have been collected.
While India provides some concessions on the trade causing a loss. Thus, the country will discontinue the concessions. It will provide equal opportunity for tariff collection to India. The whole game of the tariffs on European steel started in 2018. It was imposed on 26 varieties of steel. However, the tariff’s initial purpose was safety measures to receive products of a particular quality only. It turns into a tariff quota later. Any supply surpassing the quota used to have extra tariff charges that went up to 25%.
As it was earlier a safeguard measure, it can’t run for more than eight years. The WTO rules suspend its use beyond the given time limit. India does not want the steel tariffs to continue further. Thus, it continued with its decision to suspend the concessions further and presented them in front of the WTO. It had a huge impact on the country financially and economically. The country is facing a loss of billions of dollars in the last few years. While the EU successfully received an import duty of $1.1 billion. India’s decision will be a win for the country in its financial and economic growth. Stay tuned for more information.