UK agrees to not impose 4% countervailing duty on Indian steel bars, rod; move to benefit domestic exporters

In a big development, UK has agreed not to impose a 4 per cent countervailing duty (CVD) on certain Indian steel products like steel bars and rods. The move, which is likely to help domestic traders increase shipments came following bilateral meetings at the World Trade Organisation (WTO) in Geneva. PTI reported the news citing a goverment official. 

India's trade defence wing (TDW) has held bilateral meetings at WTO and argued against the extension of CVD against Indian exporters.

TDW argued that there was no injury to the British domestic industry and requested the UK to reconsider imposition of the duty, the official said.

"So the UK has agreed that no injury is being caused to their domestic industry and this 4 per cent duty would go away. It will help our exporters get greater market access there," the official said.

Similarly, India has successfully persuaded the US department of commerce to significantly reduce anti-dumping duty on certain Indian quartz surface products.

In June 2022, the US has proposed a duty rate of 161.56 per cent.

"Due to India's interventions, it has been brought down to 3.19 per cent," the official said adding now Indian exporters will become competitive in the US market.

In 2017-18, India exported these goods worth Rs 264 crore to the US, which rose to Rs 3,500 crore in 2021. The US imports these goods worth around Rs 24,000 crore.

In another case, the US department of commerce has imposed 13 per cent CVD on Indian sodium nitrite, but due to the intervention of India's trade defence wing, it has now reduced to 2.4 per cent.

Steel stocks could be in action when stock markets resume trading on Tuesday. The Nifty Metal index ended at 6,779.25, down 1.32 per cent from the Friday closing. In the 15 stock index, 5 advance with Tata Steel, Jindal Steel finishing in the red.  

Indian equity benchmarks Sensex and Nifty50 reversed initial gains in a volatile session on Monday. Weakness in private sector financial stocks weighed on headline indices, though strength in IT shares lent some support. 

The Sensex lost 168.2 points or 0.3 per cent for the day to close at 60,093, having retreated 493.8 points from the strongest level in intraday trade. The Nifty50 settled at 17,894.9, down 61.8 points or 0.3 per cent.