WTO opposes US duties on Chinese and Indian steel products

World Trade Organization officials said the United States violated global trade rules by imposing import duties on Indian and Chinese steel products. The WTO Dispute Settlement Group believes that the United States "acted inconsistently" in violation of the rules set for WTO members 160.

The WTO Commission announced that Washington had overestimated the benefits available to India and China and recommended that the United States take steps to fulfill its list of commitments. A similar suit against the imposing duties was filed by India in 2012, after the US imposed a tax of about 300 percent on product imports, which also included steel pipes. It was found that the United States imposed tariffs only on the basis of its assumptions that Indian steel producers benefited from excessive subsidies.

There are regulatory rules according to which an impressive tax can be introduced for WTO member countries. However, this is only possible if it is found that their domestic producers are currently dependent on subsidies provided to companies that are trading partners. But, before introducing such duties, it is necessary to conduct a detailed investigation.

Legal sparring over the scope and depth of these investigations, as well as the determination of the legitimacy of subsidies and countervailing duties, usually takes place with the participation of the WTO. The decision that the US is in breach of WTO rules by imposing duties on Chinese and Indian steel products is the first to be taken by a World Trade Organization Steel Hull Commission, and the US has the right to appeal.