The World Trade Organization's (WTO) Dispute Settlement Body has appointed a panel at the behest of India to mediate on a complaint in relation to American countervailing measures on certain hot-rolled carbon steel flat products from India.

In applying for WTO mediation, India argued the measures are inconsistent with the US's obligations under several provisions of the Agreement on Subsidies and Countervailing Measures and the General Agreement on Tariffs and Trade 1994.

At the WTO meeting, India acknowledged that every WTO member has the right to levy countervailing duties - import duties imposed to offset the impact of government subsidization - but called on the United States to do so in adherence with the aforementioned international trade laws. In response, the United States voiced "disappointment" that India had decided to request a panel on the matter. Defending its measures, the US government says that subsidies provided by India at both state and national level to its domestic steel industry "cause material injury to manufacturers attempting to compete with India's steel industry".

Also at the meeting of the Dispute Settlement Body, the United States rejected a first request made by China for the establishment of a panel to consider the countervailing duty measures applied by the United States on numerous manufactured goods from China. The list includes metal piping, wind towers and photovoltaic solar panels.

September 11, 2012

Source: Tax News

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