Thorough Review Needed Before Imposing Safeguard Duty On Steel Imports: GTRI

ENA Sectors 2025-01-03 14:04:06 New Delhi, Jan 3 (KNN) The Global Trade Research Initiative (GTRI) has urged for a thorough evaluation of the domestic steel industry before implementing the proposed safeguard duty on steel imports. The think tank's report highlights several technical concerns in the commerce ministry's ongoing safeguard investigation, including its focus on products with minimal import surges and questionable application of global safeguards. GTRI Founder Ajay Srivastava emphasised the need to assess how existing and proposed import measures affect costs, economic growth, and employment. The organisation's report particularly criticises the current regulatory framework, comprising Quality Control Orders, Steel Import Monitoring System, and No Objection Certificate requirements, describing it as excessively complex and inefficient. The investigation, initiated last month by the Directorate General of Trade Remedies (DGTR), focuses on imports of Non-Alloy and Alloy Steel Flat Products. The Indian Steel Association, representing major players including ArcelorMittal Nippon Steel India and JSW Steel, filed the application seeking safeguard duties. However, MSME exporters from the engineering sector have expressed concerns that additional duties could hamper their international competitiveness. Recent data shows India's steel sector has demonstrated robust growth, with crude steel production increasing from 109.14 million tons in 2019-20 to 144.04 million tons in 2023-24. During the same period, consumption rose from 100.17 million tons to 136.25 million tons. Notably, domestic production satisfied 94 per cent of India's steel demand in FY2024, with imports accounting for only 6 per cent. The GTRI report suggests that since most imports originate from FTA partners or China, investigations should employ FTA-specific safeguards and targeted measures rather than global safeguards. The think tank warns that using global safeguards could invite challenges at the World Trade Organisation, while also emphasising the critical role of steel flat products across various sectors of the national economy. (KNN Bureau) 40495 https://knnindia.co.in/news/newsdetails/sectors/thorough-review-needed-before-imposing-safeguard-duty-on-steel-imports-gtri 2025-01-03 14:04:06 knnindia.co.in Thorough Review Needed Before Imposing Safeguard Duty On Steel Imports: GTRI