India may impose additional tariffs worth $1.1 billion on EU products in response to the bloc’s extended safeguard duties on steel imports. The list of items, primarily steel products, is being finalized. This issue will be discussed in the upcoming bilateral free trade talks with the EU next week.
India proposes retaliatory duties worth $1.1 bn against EU’s steel curbs
India has proposed retaliatory customs duties on certain EU imports under WTO norms due to unresolved issues over the EU’s safeguard measures on steel products. India claims a trade loss of USD 4.412 billion from 2018 to 2023. The EU extended these measures until 2026, affecting India’s steel exports.
Former US President Donald Trump’s claim that India is an ‘abuser’ of import tariffs is unfair, says think tank GTRI. Many countries, including the US, impose high customs duties to protect domestic industries. The report suggests the US should consider a free trade agreement with India for zero tariff access.
The government has announced measures to address shipping sector issues affecting exporters and importers. These include reducing port charges, purchasing additional container vessels, and expediting customs clearances. The steps aim to lower shipping costs, improve container availability, and reduce port congestion.
India and South Korea have initiated electronic transfer of the bill of lading between their customs, enhancing ease of doing business. This digital move eliminates the need for physical record submissions, expected to be fully adopted in 1-1.5 years. UNCITRAL is spearheading this global shift towards electronic trade documentation.
India’s ready-made garment exports surged by 12% in August to USD 1.26 billion, despite global challenges. From April to August 2024-25, exports grew by 7.12% to USD 6.39 billion. AEPC Chairman Sudhir Sekhri credits the growth to product quality and compliance, with hopes for continued momentum through policy support and strategic realignment.
India’s Petroleum Minister Hardeep Singh Puri announced that the US is now India’s sixth-largest energy trade partner, with bilateral trade potentially reaching USD 500 billion. The hydrocarbon trade has nearly doubled since 2018-19. Puri discussed sustainable energy initiatives and investment opportunities with US stakeholders at the Gastech 2024 conference in Houston.
Six countries, including the US, UK, and Japan, have asked India about its plans to lift or ease the ban on non-basmati white rice exports. At the WTO, Japan also inquired about India’s electricity subsidy for farmers. Over 40 questions have been posed to India regarding its export restriction measures since 2022.
Commerce and Industry Minister Piyush Goyal announced that India’s exports of goods and services are expected to surpass $825 billion despite global challenges. The ministry is addressing container shortages and high freight rates. Plans include opening offices abroad to facilitate foreign investment and trade, making it easier to do business in India.
India has allowed the import of fresh green areca nut from Bhutan without a minimum import price condition through additional land customs stations in Odisha and Assam. This follows the government’s 2022 decision to permit the annual import of 17,000 tonnes of green areca nut from Bhutan, bypassing the earlier price restriction.