New Delhi, Mar 28 (PTI) India has proposed imposing retaliatory duties under WTO norms on certain goods imported from the EU, as the two sides have failed to reach a consensus on the European Union’s restrictive safeguard measures on certain steel products.
In a communication to the World Trade Organisation (WTO) dated March 27, India said it “reserves the right to suspend substantially equivalent concessions or other obligations” under a provision of the Agreement on Safeguards, on the EU’s trade.
The EU’s measure has caused an annual trade loss of USD 1.472 billion (2023-2024) to India on which the duty collection (at 25 per cent duty) would be USD 368 million.
“The measure has caused a cumulative trade loss of USD 6.92 billion to India since 18 July 2018, on which duty collection would be USD 1.73 billion,” the communication said.
India and the EU held consultations on March 19, 2025, in online mode on the European Union’s move.
“India and the EU exchanged views on the measure. The EU and India could not reach an agreement on maintaining substantially equivalent concessions, or, on trade compensation,” it said.
The consultations were held regarding the EU’s safeguard measures on certain steel products.
Earlier, the EU extended safeguard duties on imports of certain steel product categories with an out-of-quota duty of 25 per cent, for another two years till 2026. This was the second extension of the safeguards that take the form of the Tariff Rate Quota (TRQ), first imposed in 2018. It was later extended till June 2024 and then till June 2026.
Now, they have again made it more restrictive after the imposition of an additional duty of 25 per cent by the US in steel and aluminium, a trade expert said.
India is one of the countries affected by this measure as it has a substantial interest in steel exports to the EU.
In 2023-24, India’s iron and steel and their products exports to the EU increased to USD 6.64 billion from USD 6.1 billion in 2022-23.
India has substantial interest as an exporter of the products concerned and the EU’s measure is inconsistent with global trade rules.
The WTO is a Geneva-based, 166-member global body which frames rules and norms for exports and imports and adjudicates trade disputes among member countries.
India is negotiating a free trade agreement with the EU to boost trade and investment ties.
India’s exports to the EU rose by 1.5 per cent to USD 76 billion in 2023-24, while imports dipped by about 3 per cent to USD 59.38 billion in 2023-24.
