India drags US to WTO over steel, aluminium duties

India has dragged the United States to the WTO’s dispute settlement mechanism over the imposition of import duties on steel and aluminium, an official said.

"India has filed a dispute under the aegis of the WTO on the issue of imposing import duties by the US on certain steel and aluminium products," the official said.

The decision will impact exports of these products to the United States and it is not in compliance with global trade norms, India stated.

India has sought consultations with the US under the WTO's dispute settlement mechanism.

If the two nations failed to reach a mutually agreed solution through consultation, India may request for a WTO dispute settlement panel to review the matter.

US President Donald Trump on March 9 imposed heavy tariffs on imported steel and aluminium items. The move has sparked fears of a global trade war.

Trump signed two proclamations that levied a 25 per cent tariff on steel and a 10 per cent tariff on aluminium imported from all countries except Canada and Mexico.

India too has sought exemptions from the hefty tariffs. Biswajit Dhar, the professor of economics at Jawaharlal Nehru University, said the US decision would not only impact India's export of these goods but would also affect global trade.

India's exports of steel and aluminium products to the US stood at about $1.5 billion every year. India's exports to the US in 2016-17 stood at $42.21 billion, while imports stood at $22.3 billion.

Some observers feel dragging the US in the dispute over the issue may work against India as New Delhi has a trade surplus with the US. Both the countries are involved in disputes at the global trade body, in the areas of poultry, solar and steel.

The US recently filed a dispute against India on export incentives, alleging these support measures harm its workers by creating an uneven playing field.

(With inputs from agencies)