The World Trade Organization has agreed to engage in discussions and resolve amicably the dispute prevailing over the countervailing duties imposed by the US on certain hot-rolled carbon steel flat products from India. Some companies such as Essar Steel, Steel Authority of India Ltd(SAIL), Tata Steel and JSW were affected by the countervailing duties.
On December 18, 2019, the US notified the Dispute Settlement body of its decision to appeal against the WTO compliance panel ruling which directed measures against Indian hot-rolled steel flat products in compliance with multilateral trade rules. But the matter could not be taken up by the Appellate Body because it had stopped functioning as the US has not agreed to the appointment of the new judges and raised demands of reforms to be brought about in the body’s functioning prior to the appointment. The compliance panel has found that the US has not complied with the rulings and recommendations of the dispute panel.
The present body has only one member instead of seven and a minimum of three members are required to hear the appeals.
“The parties (India and the US) continue to engage in good faith discussions to seek a positive solution to this dispute. The parties understand that the US will submit a notice of appeal and an appellant submission once an Appellate Body division can be established and that India may file its own appeal on alleged errors in issues of law covered in the panel report and legal interpretations developed by the panel at that point of time,” as per a joint submission by India and the US to the Dispute Settlement Body of the WTO.
The two countries have agreed that requests for adoption of the compliance panel report will be made only after the Appellate Body Division is established to hear and complete any appeal in this matter. For the time being the US can continue levying countervailing duties on some of the Indian steel products.
