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World Trade Organization rules in India's favour in steel dispute with US

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The World Trade Organization on Tuesday upheld in part a judgement that the US broke global trade rules by imposing import duties on Indian steel products, in a mixed ruling that also found elements in Washington's favour.

In one of the most complicated cases it has ever considered, the WTO's Appellate Body reversed some of the findings made by the organisation's dispute settlement panel in July and upheld others.

It found in favour of both sides in technical elements of the dispute, but concluded that the US was "inconsistent with its obligations" and should be brought into line.

India filed its complaint at the WTO in 2012, after Washington imposed duties of nearly 300 percent on imports of products including steel pipes.

The US applied the duties because it felt Indian steel manufacturers were benefitting from unfair subsidies.

The WTO polices global trade accords in an effort to offer its member economies a level playing field.

Its panels can authorise retaliatory trade measures by the wronged party if its rival fails to fall into line.

In a major relief to the steel industry, the WTO has ruled against the US which had imposed high duty on imports of certain steel products from India.

The Appellate Body of the World Trade Organisation (WTO) has ruled that the duty imposed by the US on the Indian steel products is "inconsistent" with its Agreement on Subsidies and Countervailing Measures.

However, it also rejected some of the findings of the Geneva-based organisation's dispute settlement panel which were in India's favour.

The body has also recommended that the US should modify its norms and bring them in line with the WTO's agreement.

After India filed its complaint at the WTO in 2012, the dispute settlement panel of the body in July this year had ruled in India's favour against the USA's imposition of higher duties on New Delhi's steel imports.

A member country can challenge panel's ruling and approach Appellate Body of the WTO.

The US Department of Commerce (USDOC) had imposed countervailing duty (CVD) on India's exports of hot rolled carbon steel flat products.

As per reports, Washington has imposed duties of about 300 per cent on these product imports.

The US had imposed the higher duties on steel imports from India arguing that some domestic companies were being indirectly subsidised by the Indian government.

Partial victory for India in US steel dispute.

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